James Bone in Chicago
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Buried on page 59 of the indictment is a reference to one of many alleged kickbacks on a state contract that appears to have ended up as a $10,000 donation to an unnamed “political candidate”.
The kickback was allegedly arranged by Antoin “Tony” Rezko, a Syrian immigrant who became a powerful political fixer in Chicago. The “political candidate” who benefited from the $10,000 has been identified as Barack Obama, the Democratic contender calling for “change we can believe in” in the presidential race, who is said to be a longtime friend of Mr Rezko.
Mr Rezko goes on trial for money-laundering, fraud, aiding bribery and attempted extortion in Chicago today in a closely watched case that could pose an uncomfortable three months for Mr Obama as prosecutors probe the political culture of Chicago.
Mr Obama has not been accused of any wrongdoing and will not necessarily have known how donations were raised. But the testimony is likely to link his campaign funds to the political underworld of the city.
Mr Rezko is an old friend of Mr Obama who donated to his political career since his first campaign for the Illinois state senate in 1995. The two were so close that Mr Rezko’s wife helped the Obamas to buy their Chicago house by purchasing the adjoining garden from the same seller on the same day in 2005, a year after Mr Obama won a US Senate seat.
Mr Rezko also has business contacts with Nadhmi Auchi, a British-Iraqi billionaire who was convicted of corruption in the Elf scandal in France in 2003. Mr Auchi’s lawyers say he is appealing against the conviction to the European Court of Human Rights. Mr Rezko says that the two are close friends, but Mr Auchi denies this.
Mr Rezko, a property developer and fast-food entrepreneur, was remanded in prison in January for violating his bail by failing to report $3.7 million (£1.9 million) in money transfers from Mr Auchi’s companies. Mr Auchi says that the payments were a business loan. In an effort to distance himself from the scandal and what may be tainted money, Mr Obama has given $157,835 in political contributions that he received from Mr Rezko and associates to charity. But his relationship with Mr Rezko has become a hot issue in the presidential race. Hillary Clinton’s campaign accuses Mr Obama of ducking questions about their ties.
“Now the trial is beginning, and I think it will be more difficult for him to avoid these various serious questions,” Howard Wolfson, Mrs Clinton’s communications director, told reporters. “I can guarantee you that if, again, if the shoe were on the other foot, I would be getting those questions, and I’d be having to answer them to people who are very serious investigative reporters . . . who know the right questions to ask and don’t take ‘no comment’ for an answer.”
The Rezko trial threatens to engulf Illinois in a new political scandal only months after George Ryan, the previous Illinois governor, was sent to jail for 6½ years for corruption while in office. In all, four former Illinois governors have been indicted for whitecollar crime since 1960 and three of them — Otto Kerner, Dan Walker and Ryan — were convicted. Mr Rezko is one of at least 11 people linked to the current governor, Rod Blagojevic, who have been charged with crimes.
Mr Blagojevic himself has been identified by the judge as the unnamed “Public Official A” in the indictment whose campaign fund stood to gain a $1.5 million donation that Mr Rezko allegedly tried to extort from an investment firm. Governor Blagojevic responded: “What was described there doesn’t describe me or how I do things.” Mr Rezko is accused of demanding kickbacks from companies seeking to do business with two state boards that were controlled by his friends, the Teachers’ Retirement System, which manages Illinois teachers’ $30 billion pension fund, and the Illinois Health Facilities Planning Board, which must approve all building permits involving hospitals.
“Rezko parlayed his success in raising significant sums of money for Mr Blagojevich into power by gaining access to high-ranking Illinois officials, being given deference in filling board and job positions, and by influencing how certain boards conducted business,” prosecutors said last week.
The star witness will be Stuart Levine, a member of both state boards, who has pleaded guilty and agreed to testify against his alleged accomplice, Mr Rezko. Defence lawyers, however, plan to assail Mr Levine as a man who is said to be a heavy user of drugs who led a “secret life”. The court is also expected to hear from John Thomas, an FBI mole, who reportedly witnessed Mr Obama and Mr Blagojevich making frequent visits to Mr Rezko. Judge Amy St Eve has said that she will allow prosecutors to offer evidence that Mr Rezko directed two associates to make two $10,000 contributions to Mr Obama’s 2004 senate campaign because he had already donated the legal maximum.
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No, the tone is that he donated the donations AFTER it was made public. Do you really believe he received contributions from Rezko and didn't thank him for them. Come on, how many times can someone "not know". It's not a good enough excuse for other candidates, why should it be usable for him? I would also like to know why Mr. "Pull this nation together" hasn't shown that he really means this by addressing the super delegates that have been threatened by their constiuents to vote black or they won't be back. If he was real, he would address them and tell them that isn't right. Not right for whites, not right for blacks.
Sandy Gray, Westlake, Ohio
The tone of this piece makes it sound like Obama got a kick back. That is not true. He got a donation. When he learned of its dubious sources, he returned the donation. No big deal.
A bigger story is McCain's enthusiastic embrace of anti-Catholic bigot John Hagee. Where is that story?
John, Cincinnati, OH
If it was Hillary taking campagne funds from a shady character, it would be front page news. A different standard for women. But, when everything finally comes to light, it may be too late.
Annie Holmes, San Antonio, USA/Texas
Hmmm! There is also a photo of Rezko with Bill and Hillary Clinton. Perhaps the reason why Hillary hasn't pushed this issue as much as she would?
ben, george town, cayman islands
I do not remember any candidates from the democratic and republican parties who did not have any links to lobbyists.
It is well known that senator Obama has not been accused of doing anything wrong. The press is always there for their own good which is to make people and unmake them if need be just in order to have a story. Sad.
lily, Berlin, Germany
Surely one word, is missing, from this story. The one word, that, now is quoted, endlessly, when referring to JFK's many 'indiscretions'- private and public.
The word -'ALLEGED'!
Oh, hum!
prudence eely bond mcguire, LONDON, ENGLAND UK.
Well it looks as though Mr. Obama is fully qualified to be come President of the United States. He made his bones in Chicago. That speaks volumes about him. You shall know people by the company they keep. He will definitely get the criminal vote.
quantumfoam, greenville, USA,SC
QUOTE;
"The court is also expected to hear from John Thomas, an FBI mole, who reportedly witnessed Mr Obama and Mr Blagojevich making frequent visits to Mr Rezko. Judge Amy St Eve has said that she will allow prosecutors to offer evidence that Mr Rezko directed two associates to make two $10,000 contributions to Mr Obamaâs 2004 senate campaign because he had already donated the legal maximum." UNQUOTE.
Says it all really.
Just what do you think he would do if he got the top job?
D Case, Newquay, UK
I know this might be very difficult for most people to do, but can't we allow the court system the opportunity to review this case and render a verdict before we find someone "guilty." This elections cycle is too important to allow induendo to run rampant. If we want to we can find many reports in the media that would cause us concerns about all of the candidates (democrat and republican). Let's stay focused on this campaign and not allow the media to constantly try to distract us with half truths.
Vegas Voter, Las Vegas,
why isnt this all over the news??
Just like everything else with Obama the media pussy foots around it
SNLS portrayal last night of the debate was exactly what went through my mind while watching the real one
Sad thing is that this guy just might get elected before any body has the back bone to expose him
betty, princeton, mn
Heretics! That you should even question Obama's pure as the driven snow character. My goodness, you must really believe all that is said about the slimey, sleazy Chicago political machine that proves a stepping stone to Federal prisons. How many, I wonder, remember how Mayor Dick Daley (father of the current mayor) caused the dead to rise from their graves in Chicago and Illinois to give the 1960 to JFK. (With an able assist, that is, from the Texas dead delivered by LBJ.
In the current wave of messianic belief by and of Obama, surely you shall be burned at the stake for your heresy!
Bob Evans, Anaheim, California