The Rezko Connection: Obama's Achilles Heel?

Obama's Connection With an Accused Political Fixer Raises Questions

By BRIAN ROSS and RHONDA SCHWARTZ

Jan. 10, 2008—

In sharp contrast to his tough talk about ethics reform in government, Sen. Barack Obama, D-Ill., approached a well-known Illinois political fixer under active federal investigation, Antoin "Tony" Rezko, for "advice" as he sought to find a way to buy a house shortly after being elected to the United States Senate.

The parcel included an adjacent lot which Obama told the Chicago Tribune he could not afford because "it was already a stretch to buy the house."

On the same day Obama closed on his house, Rezko's wife bought the adjacent empty lot, meeting the condition of the seller who wanted to sell both properties at the same time.

Rezko had been widely reported to be under investigation by the U.S. attorney and the FBI at the time Obama contacted him and has since been indicted on corruption charges by a federal grand jury in a case that prosecutors say involves bribes, kickbacks and "efforts to illegally obtain millions of dollars."

This week, a federal judge in Chicago ordered the Rezko trial to begin Feb. 25.

Obama maintains his relationship with Rezko was "above board and legal" but has admitted bad judgment, calling his decision to involve Rezko "a bone-headed mistake."

Rezko's behind-the-scenes connection in the Obama house deal became public as Rezko revealed personal financial details as he sought to post bail.

While Rezko's wife paid the full asking price for the land, Obama paid $300,000 under the asking price for the house. The house sold for $1,650,000 and the price Rezko's wife paid for the land was $625,000.

Obama denies there was anything unusual about the price disparity. He says the price on the house was dropped because it had been on the market for some time but that the price for the adjacent land remained high because there was another offer.

Obama then expanded his property by buying a strip of the Rezko land for $104,5000, which the senator maintains was a fair market price.

Obama later told the Chicago Sun-Times, "It was a mistake to have been engaged with him at all in this or any other personal business dealing that would allow him, or anyone else, to believe he had done me a favor."

Obama had known Rezko long before the house deal, calling him a "friend."

An ABC News review of campaign records shows Rezko, and people connected to him, contributed more than $120,000 to Obama's 2004 campaign for the U.S. Senate, much of it at a time when Rezko was the target of an FBI investigation.

"It surprised me that late in the game he [Obama] continued to take contributions from somebody who was under a rather dark cloud in the state," said Cynthia Canary of the Illinois Campaign for Political Reform, a group that has worked closely with Obama and supported his legislative efforts.

In the wake of the Rezko indictment, Obama says he has given $44,000 of the Rezko-connected money to charity.

There is no mention of Obama in the Rezko indictment. Federal authorities say the investigation is focused on Illinois Gov. Rod Blagojevich, identified in court filings as Public Figure A.

Antoin “Tony” Rezko Is A Chicago Businessman With Investments In Both Real Estate And Fast Food Restaurants. (David Jackson and John Chase, “Rezko’s Life A Story Of Pizza And Politics,” Chicago Tribune, 10/12/06)

Rezko Was Convicted Of Wire And Mail Fraud, Money Laundering, And Aiding And Abetting Bribery. (Bob Secter and Jeff Coen, “Rezko Convicted,” Chicago Tribune, 6/5/08)

Eleven Low-Income Housing Buildings Located In Obama’s State Senate District And Owned By Rezko’s Company, Rezmar, Were “Falling Apart” And Going Into Foreclosure. (Tim Novak, “Obama And His Rezko Ties,” Chicago Sun-Times, 4/23/07)

Rezko Courted Local Politicians Who Controlled Decisions That Affected His Business Efforts, Giving At Least $385,000 Since 1994 And Bundling “Millions Of Dollars” For Gov. Rod Blagojevich (D-IL). (David Jackson and John Chase, “Rezko’s Life A Story Of Pizza And Politics,” Chicago Tribune, 10/12/06)

Rezko Was Among Obama’s First Political Supporters When Obama First Ran For Public Office. (Christopher Drew and Mike McIntire, “An Obama Patron And Friend Until An Indictment In Illinois,” The New York Times, 6/14/07)

Obama Paid $300,000 Less Than The Asking Price For His Home, While Rezko’s Wife Paid Full Price For A Vacant Lot Next Door On The Very Same Day.  (Tim Novak, “Obama And His Rezko Ties,” Chicago Sun-Times, 4/23/07)

“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.” (Tim Novak, “Obama’s Letters For Rezko,” Chicago Sun-Times, 6/13/07)

Obama Completed Legal Work On Rezko-Related Projects. (Tim Novak, “Obama And His Rezko Ties,” Chicago Sun-Times, 4/23/07)

The Obamas And Rezkos Took A Trip Together To Rezko’s Home At Lake Geneva, WI. (Sen. Barack Obama, Interview With Chicago Sun-Times, Chicago, IL, 3/15/08)

Obama Has Acknowledged That Rezko Has Raised About $250,000 For His Campaigns. (Tim Novak, Chris Fusco, Dave McKinney and Carol Marin, "More Rezko Dough Found," Chicago Sun-Times, 3/15/08)

FLASHBACK: In December 2006, Obama Said His "Best Estimate" Was That Rezko Raised Between $50,000 To $60,000. (Chris Fusco and Tim Novak, "Rezko Cash Triple What Obama Says," Chicago Sun-Times, 6/18/07)