Obama's House of Cards
Sunday, October 26, 2008
Obama And Rezko Have Had An Extensive Relationship That Includes The Purchase Of Obama's Home
Newsweek Reported On An RNC Video And Discussed Tony Rezko's Role In Obama's Home Purchase:
The Republican National Committee Is Releasing A New Video About The Relationship Between Obama And Tony Rezko. "A new video, just released by the Republican National Committee this week, revives charges about a relationship that first came up last spring during the Democratic primaries. The McCain campaign has also begun 'robo' calls and direct mailings and is preparing TV ads on Rezko that will 'likely' run next week, said a campaign official who asked not to be identified." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
Obama's Relationship With Rezko Was Extensive And They Even Spoke "Once A Day" For A Period Of Time. "Obama's relationship with Rezko was far more extensive [than his relationship with Ayers]... Rezko was for years a principal fundraiser for Obama, having brought in over $250,000 for the Democrat's state Senate races and his 2004 U.S. senate campaign. During Obama's Senate race, Rezko served on his finance committee. For a period during that campaign, 'I would probably be talking to him once a day,' Obama said in an interview with the Chicago Sun-Times last March." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
When Obama Purchased His House For $300,000 Less Than The Asking Price, Rezko Paid Full Price For The Lot Next Door. "Two years ago, the Chicago Tribune disclosed that Obama and Rezko purchased adjoining properties from a single seller on the same day in June 2005. The seller, Dr. Fredric Wondisford, now a professor at Johns Hopkins Medical School in Baltimore, had insisted that both properties close at the same time. Obama paid $1.3 million--$300,000 less than the original asking price--for the Georgian mansion on his property. Rezko paid full price, $625,000, for the vacant lot next door. Obama has acknowledged in several press interviews that he alerted Rezko to the availability of the adjoining property, but said that Rezko made the decision to buy the lot on his own without coordinating his offer with Obama." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08
Seven Months Later, Obama Purchased A Part Of The Side Lot From Rezko For $104,000. "Seven months later, on Jan. 4, 2006, Obama paid Rezko $104,000 for a strip of the developer's land so he could expand his side yard. Obama has conceded this later deal was a 'boneheaded' mistake on his part, given that the Chicago news media had run multiple stories by that time reporting that Rezko was under scrutiny as part of a wide-ranging political corruption probe being conducted by U.S. Attorney Patrick Fitzgerald. One such story, in the Chicago Sun-Times, appeared on Dec. 31, 2005--the week before Obama bought the side strip from Rezko. The article reported that federal prosecutors had subpoenaed Rezko-related businesses as part of an investigation into the awarding of Illinois State Toll Highway Authority leases." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
Obama: "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 that he had done me a favor ... For that reason, I consider this a mistake on my part, and I regret it." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
It Has Been Said That Rezko Was Willing To Pay The Inflated Price As A Financial Favor To Rezko And That Obama Purchased The Side Lot For $104,000, Despite The Property Being Valued At $40,000, In Order To Return The Favor. "GOP critics have charged that, given the insistence of the seller to close on both properties at the same time, Rezko's willingness to pay an inflated price for the lot next door to Obama was a financial favor to him. Obama, they charge, later returned the favor by paying the $104,000 price for the side strip (one sixth of Rezko's lot) when his own November 2005 appraisal only valued the strip at $40,000. Obama has said that he offered the $104,000 price because it was one sixth what Rezko paid for the entire lot and he did not want to be perceived as taking any favors from the developer." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
"Rezko, Who Was Indicted In October 2006, Was Convicted Last June On 16 Felony Charges Of Fraud, Money Laundering And Aiding And Abetting A Bribery Scheme Involving Businesses Seeking Illinois State Business." (Michael Isikoff, "The Return Of Rezko, Newsweek, 10/25/08)
Recently, A Lawsuit Was Filed Saying That The Rezko Lot Purchase Has Been Part Of The Investigation Into Rezko's Illegal Activities. "A recent lawsuit filed by Kenneth J. Conner, a former real estate analyst, against Mutual Bank of Harvey, Ill., for wrongful termination, includes an exhibit indicating for the first time that loan records of the Rezkos' purchase of the vacant lot next door to Obama has come up in Fitzgerald's investigation. The exhibit is an Oct. 19, 2006, e-mail distributed among bank executives referring to a 'grand jury subpoena' for 'Rita Rezko's loan' for the property at 5050 S. Greenwood Avenue--the lot adjacent to the Obamas." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
The Lawsuit, Filed By An Employee Of the Bank Rezko Used To Finance The Purchase, Said That The Lot Was Overvalued By $125,000. "In the lawsuit, filed in Cook County Circuit Court last week, Conner claims that he was asked to review the bank's appraisal of the property purchased by Rezko after the bank learned that he was selling a slice of it to Obama. Conner says he concluded that the bank's appraisal of the property was 'overvalued' by $125,000 and that, based on comparable prices of nearby properties, the vacant lot that the Rezkos paid $625,000 for was worth no more than $500,000. To back up his own conclusion, he included as an exhibit an appraisal that Obama paid for in November 2005, which assessed Rezko's property to be worth $490,860--about the same as Conner's assessment and also far less than Rezko and his wife paid for it. The president of Mutual, Amrish Mahajan, pers onally approved the loan to Rezko's wife and had an 'established relationship' with Rezko, according to the lawsuit." (Michael Isikoff, "The Return Of Rezko," Newsweek, 10/25/08)
THE OBAMA REZKO RELATIONSHIP
Rezko Offered Obama A Job After Law School And The Two Have Been Friends Ever Since:
Rezko Offered Obama A Job When He Was A Harvard Law Student And The Two Have Stayed In Touch Ever Since. "One of them was Sen. Barack Obama (D-Ill.), who was offered a job by Rezko in the early 1990s while a top student at Harvard Law School. Obama did not take it, but over the years, the two men stayed in touch..." (Peter Slevin, "Obama Says He Regrets Land Deal With Fundraiser," The Washington Post, 12/17/06)
Obama And Rezko's Socializing Included Their Wives And A Trip To Rezko's Lake House:
Obama And Rezko Socialized Over Lunch Or Breakfast And Discussed Politics And Family. Obama: "We'd [Obama and Rezko] continue to have lunches or breakfasts. We'd talk about politics. We'd talk about family." (Sen. Barack Obama, Interview With Chicago Sun-Times, Chicago, IL, 3/15/08)
Obama And Rezko Would Also Socialize With Their Wives Over Dinner. Obama: "In terms of other than lunch or breakfast he and I had, socially, Michelle and I probably had a couple of dinners, or two or three dinners with [Rezko] and his wife during the course of this six or seven or eight years." (Sen. Barack Obama, Interview With Chicago Sun-Times, Chicago, IL, 3/15/08)
The Obamas And Rezkos Took A Trip Together To Rezko's Home At Lake Geneva, WI. Obama: "[Barack And Michelle Obama] Visited their home in Lake Geneva once for the day." (Sen. Barack Obama, Interview With Chicago Sun-Times, Chicago, IL, 3/15/08)
Rezko Was One Of Obama's Biggest Fundraisers, Raising $250,000 For His Campaigns:
Rezko Was "One Of The Biggest Fundraisers" For Obama. "'This was discussed a lot. They wanted to have a good showing,' said a source familiar with the fund-raiser [Rezko held for Obama], speaking on condition of anonymity. 'Tony was one of the biggest fund-raisers.'" (Chris Fusco and Tim Novak, "Rezko Cash Triple What Obama Says," Chicago Sun-Times, 6/18/07)
Obama Has Admitted To $250,000 Worth Of Campaign Funding Provided By Tony Rezko. "For the first time, Sen. Barack Obama put a figure Friday to the amount of campaign contributions that indicted political fund-raiser Tony Rezko raised for the senator's campaigns, and the number -- about $250,000 -- was far more than he previously acknowledged." (Tim Novak, Chris Fusco, Dave McKinney and Carol Marin, "More Rezko Dough Found," Chicago Sun-Times, 3/15/08)
However The Most Recently Reported Total Of Rezko Related Funds The Obama Campaign Has Donated To Charity Is $160,000. "Obama, seeking to distance himself from his patron [Rezko], has donated $160,000 in Rezko-related contributions to charity." (Dan Morain, "Obama To Be In Background Of Trial," Los Angeles Times, 3/3/08)
Obama Wrote Letters To Support Taxpayer Funding Of A Tony Rezko Development Project:
"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)
The Letters Show That Obama Did Do A Political Favor For Rezko. "Obama's letters, written nearly nine years ago, for the first time show the Democratic presidential hopeful did a political favor for Rezko - a longtime friend, campaign fund-raiser and client of the law firm where Obama worked - who was indicted last fall on federal charges that accuse him of demanding kickbacks from companies seeking state business under Gov. Blagojevich." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
Obama: "I am writing in support of the New Kenwood LLC's proposal to build a ninety-seven unit apartment building at 48th and Cottage Grove for senior citizens." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
FLASHBACK: In December Of 2006, Obama Said He Had "Never Done Any Favors For Him." "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.'" (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
"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." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
Rezko And Davis Paid The City Only $1 For The Land. "Rezko and Davis paid the city $1 for the land and spent more than $100,000 to clean it up..." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
"The $14.6 Million Cottage View Terrace Was Funded Entirely By City, State And Federal Taxpayers." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
"In Addition To The Development Fees, A Separate Davis-Owned Company Stood To Make Another $900,000 Through Federal Tax Credits." (Tim Novak, "Obama's Letters For Rezko," Chicago Sun-Times, 6/13/07)
Obama Was Identified In The Rezko Trial As Receiving Tainted Money From A Rezko Business Associate:
Obama Was Identified As The Unnamed "Political Candidate" In The Rezko Case, Who Received $10,000 In Contributions From Funds Obtained Through A State Pension Investment Scheme. "Obama is not named in the Dec. 21 court document. But a source familiar with the case confirmed that Obama is the unnamed 'political candidate' referred to in a section of the document that accuses Rezko of orchestrating a scheme in which a firm hired to handle state teacher pension investments first had to pay $250,000 in 'sham' finder's fees. From that money, $10,000 was donated to Obama's successful run for the Senate in the name of a Rezko business associate, according to the court filing and the source." (Dave McKinney, Natasha Korecki, Chris Fusco and Tim Novak, "Obama Surfaces In Feds' Rezko Case," Chicago Sun-Times, 1/20/08)
Obama Has Performed Work On Rezmar Related Real Estate Deals:
Obama Did Legal Work On Some Projects Involving Tony Rezko's Company, Rezmar. "But Obama did legal work on real estate deals while at Davis' firm, according to biographical information he submitted to the Sun-Times in 1998. ... And he did legal work on Rezko's deals, according to an e-mail his presidential campaign staff sent the Sun-Times on Feb. 16, in response to earlier inquiries. The staff didn't specify which Rezmar projects Obama worked on, or his role." (Tim Novak, "Obama And His Rezko Ties," Chicago Sun-Times, 4/23/07)