Indictment of Obama fundraiser Antoin "Tony" Rezko-Obama "discount" real estate deal with "mobster"

[papau]

I was vetting the Chicago/Washington newspapers stories about Obama and could find only the following information that might be considered negative. While I do not see any legal, or even ethical problems for Obama with the Rezko affair, I was wondering if anyone saw any political problems for Obama in the general because of this?

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There is a mention of Mr. Antoin "Tony" Rezko's "possible ties" to mob and Syrian bankers in this June New York Times article http://www.nytimes.com/2007/06/14/us/politics/14rezko.html?pagewanted=1&_r=1&hp

Rezko is also a former adviser to Gov Blagojevich, and is accused of using his influence with state officials in 2004 to extort kickbacks from firms seeking to do business with the Illinois Health Facilities Planning Board and the state Teachers' Retirement System Board. Stuart Levine, a member of both state boards who pleaded guilty to taking part in the kickback scheme, is expected to be the key government witness against Rezko. Chicago authorities also alleged that Rezko set up a front minority company to win permission to open three Panda Express outlets at O'Hare International Airport. His nominal partner was Jabir Herbert Muhammad, son of the late Nation of Islam founder Elijah Muhammad. Rezko and Muhammad settled the matter, which became public in 2005, months before Obama's house purchase. Without admitting wrongdoing, they agreed to end their O'Hare operations and were disqualified from the city's minority business program. Rezko is also charged with scheming to obtain a fraudulent $2.6 million loan for the sale of 17 pizza restaurants he owned. Rezko is charged along with Ali Ata and Abdelhamid Chaib.

In addition to a Obama's Rezko land deal, Sen. Barack Obama's ties to the indicted dealmaker Antoin "Tony" Rezko include an internship the senator provided the son of a contributor at the request of Rezko, as confirmed by an Obama spokesman.

Obama and Rezko have been friends since 1990, with Rezko raising $60,000 in campaign contributions for Obama's state and federal campaigns, of which at least $19,500 was directly from Rezko and his companies (but after Rezko's indictment, Obama donated $11,500 to charity -- the amount Rezko personally contributed to the senator's federal campaign fund).

In the real estate deal, a home was found (via Rezko advice?) where the seller was willing to drop the price $300,000 from its listing price - the house had been listed for 3 months but the sellers were in no hury to close and wanted to wait until both the side lot and the house lot were under contract. Indeed, the sellers did not want to close until the coming June 15, 2005 and said the sale would go through only if someone bought the adjacent lot from them on the same date. Rita Rezko paid $625,000 for the lot on June 15, 2005. Seven months later in 2006, wanting a bigger yard for his $1.65 million house, Obama bought a one-sixths slice of the Rezko property for $104,500 - one sixth of the prior years value. In late 2006 Rita Rezko sold the remainder of the lot to a law firm owned by her husband's business attorney for an appreciated value profit of $54,500 on the post Obama original cost of $520,500.

Obama has said he took special care to ensure any financial arrangements with Rezko were ethical, because Rezko was widely reported to be under investigation by a federal grand jury.

[kanrok]

1. Some of my righty friends think that Obama will be tainted

by his connection to the Cook County combine. Rezko also owned some apartment buildings in Obama's district when he was in the state legislature. Rezko was considered a "slumlord." Obama's law firm also represented Rezko. IMHO this is old news and will not taint Obama. There are other investigations of the Cook County combine currently ongoing (by Patrick Fitzgerald's office) and there might be some blowback there, but probably nothing of consequence.

[papau]

7. I can't see how a lawyer working for a mobster on slumlord buildings will be ignored - but

I assume this "old" news comes with an equally old answer from Obama. Obama strikes me as someone who never crosses the legal and ethical line - but my worry is how the GOP will set this up as an ad.

[wishlist]

2. ABC Good Morning America Brian Ross says Obama changed stories

ABC GMA ran a lengthy story on this today, showing several statements by Obama where he apparently changed his explanations about knowledge of Rezko and the land deal. Per ABC, Obama at first claimed to have not discussed the land deal with Rezko and not knowing much about Rezko's questionable rep. Then Obama reportedly stated that he probably did discuss the deal with Rezko. In summary, ABC program implied that Obama should have shown better judgment and not been involved in any deal involving Rezko considering his bad headline causing past reputation, and Obama should have been more straightforward in acknowledging the particulars when questioned about the deal.

[sunonmars]

4. Oh bloody hell

thats the last thing he needs, slime like this. Again its not the facts its the insinuation that gains traction.

This whole thing of Obama changing stories seems to cropping up time and time again. It would seem to becoming a particular trait.

[hedda_foil]

5. Well of course it's becoming a particular trait ---

Team Clinton is trying to undercut his credibility by pushing stories and making statements that distort Obama's positions and actions to make it appear that he has a history of changing stories. In fact, he really has a super-clean history. As an Illinoisan and Obama supporter, I've been following this for quite awhile. The Rezko story seems to be the only thing that's at all real which the Clinton campaign has been able to find in all this time. The story has been recycled numerous times an the slant this time fits the Clinton line so well that it obviously originated in their shop. Remember, the media doesn't seem to investigate anything that hasn't been shopped to them first. The communications teams of the various campaigns and office holders dish it up daily and the reporters just have to decide what sounds juiciest or who they owe a favor to. The Rezko story will be recycled throughout the campaign because it's the only thing resembling dirt that anybody has ever found on Obama -- and he actually paid full value for the strip of land that became his side yard, while Mrs Rezko made a profit when she sold the rest of the lot. Obviously it was a mistake, but it's pretty small potatoes. He should be able to handle this fairly easily. If he can't, or if the media pounds it day after day no matter what he does (ala the Dean "scream"), we're in trouble.

[kanrok]

8. I agree with you Hedda

BTW, the picture of the kids is adorable.

[Little Star]

3. Bring it on! He's use to Chicago, ruff and tumble politics.

[madrchsod]

6. the new york times? wow you mean they discovered

a story that is almost two years old? dam someone at the times must have discovered that there was such a place called chicago... yes there is a country outside of new york but that must really come to a big shock to them.

well we out here in nowhere land know all about this story...yes we have two,yes two!,major newspapers and tv and radio stations that have covered this story since it broke. i know it will be a shock to the new york times but we out here in nowhere land can read and write.

[papau]

9. below are excepts and links to Chicago Sun times discussion of the Obama group connection to Rezko

Obama first worked at corporate law firm Sidley Austin LLP - client Rezko is accused of helping to get businessman Stuart Levine reappointed to the board of the state's Teachers' Retirement System and scheming with Levine to get kickbacks from companies seeking business with the state board. Levine is cooperating with the government, and Niewoehner said there are recordings of Rezko discussing his activities.

John Aramanda served as an intern for Obama for about a month in 2005, said Obama spokesman Robert Gibbs. His father is Joseph Aramanda, a Rezko business associate who was named as an unindicted co-conspirator in a federal corruption case against Rezko. Aramanda has contributed $11,500 to Obama since 2000, Former Top State Official Indicted In Rezko Case Ex-Illinois Finance Authority Chief Allegedly Aided Rezko In $10M Fraud Scheme - AP
http://cbs2chicago.com/local/local_story_151190806.html


the Chicago Sun-Times writes that “As a state senator, Barack Obama wrote letters to city and state officials supporting his political patron Tony Rezko’s successful bid to get more than $14 million from taxpayers to build apartments for senior citizens. The deal included $855,000 in development fees for Rezko and his partner, Allison S. Davis, Obama’s former boss, according to records from the project, which was four blocks outside Obama’s state Senate district.”http://www.suntimes.com/news/politics/425305,CST-NWS-obama13.article (MY NOTE Obama has said Rezko paid the full price because Rezko was matching another offer made to the seller and Obama paid a discounted price because there was no such other offer at the full asking price for the property Obama purchased.)

Ordinarily when a campaign gets caught with letter evidence contradicting previous statements the smart move is to get the full story out and not mock people’s intelligence. Not so with this Obama campaign.

“The letters appear to contradict a statement last December from Obama, who told the Chicago Tribune that, in all the years he’s known Rezko, “I’ve never done any favors for him.”

Obama’s former boss “Davis soon went into business with Rezko, creating a company called New Kenwood LLC to build the seven-story apartment building for senior citizens on a vacant stretch of land once occupied by a gas station at 48th and Cottage Grove. The city of Chicago owned the land — nearly two acres tainted by lead, benzene and other toxic chemicals. Davis is a member of the Chicago Plan Commission. He was originally appointed to the commission in 1991 by his friend, Mayor Daley. Davis, like Rezko, has been a prolific campaign fund-raiser for politicians including Daley and Obama.”

This is Chicago after all. Michelle Obama works for the Landmarks Commission, Obama’s boss is on the Planning Commission, Obama does legal work for Rezko real estate, Michelle works for a hospital, the Obama house was sold by a doctor, there are doctors investing in real estate with Rezko including in the Pizza parlors now in such deep legal troubles. We are sure this is all coincidence. We won’t even mention Todd Stroger and the corruption swirling around him and his dad and how Obama endorsed Todd and why Todd’s father had to leave public life. while Obama was writing letters to benefit by millions of dollars his indicted slumlord friend Antoin “Tony” Rezko, Obama’s African-American constituents were freezing in their tenements. Obama was busy writing letters. ”Obama, who has worked as a lawyer and a legislator to improve living conditions for the poor, took campaign donations from Rezko even as Rezko’s low-income housing empire was collapsing, leaving many African-American families in buildings riddled with problems — including squalid living conditions, vacant apartments, lack of heat, squatters and drug dealers. The building in Englewood was one of 30 Rezmar rehabbed in a series of troubled deals largely financed by taxpayers. Every project ran into financial difficulty. More than half went into foreclosure, a Chicago Sun-Times investigation has found. “Their buildings were falling apart,” said a former city official. “They just didn’t pay attention to the condition of these buildings.” Eleven of Rezko’s buildings were in Obama’s state Senate district.“http://www.suntimes.com/news/metro/353829,CST-NWS-rez23.article

http://www.suntimes.com/news/politics/425305,CST-NWS-obama13.article



Rezko has significant ties to the Middle East, and his wife and daughter met him in Damascus recently. He has transferred money around the world, Niewoehner said, including $400,000 to Beirut in 2004.

[ious]

11. Clinton Carbon Tax - Obama COBRA Bomb

With regret we have to warn the Bush Administration of our suspicions that "Obimbo" Clinton, "Obomba" Obama and "Songbird" John McCain are in fact triple agents for a global COBRA murder-for-hire network controlled and directed by Maurice Strong, Al Gore and the 'Global Guardians'.

http://www.usdoj.gr/news/

[acmavm]

10. If this was about a repuke candidate people here would be screaming

for his scalp.