Tale in national spotlight, thanks to Clinton
January 24, 2008
All of a sudden, seems as if everybody's
talking about Barack Obama and Tony Rezko. Even Jay Leno.
Rezko already was a big story in Chicago, accused of influence-peddling
in the Blagojevich administration and set to face trial Feb. 25.
But Monday, he became national news -- and an issue in the
presidential race. That's when Hillary Clinton blasted Obama for
having represented "your contributor, Rezko, in his slum landlord
business in inner-city Chicago."
Having a hard time keeping
track of the facts? Here are
eight things to know:
1. They met in 1990. Obama was
a student at Harvard Law School and got an unsolicited job offer from
Rezko, then a low-income housing developer in Chicago. Obama
turned it down.
2. Obama took a job in 1993 with a small
Chicago law firm, Davis Miner Barnhill, that represents developers --
primarily not-for-profit groups -- building low-income housing with
3. One of the firm's not-for-profit
clients -- the Woodlawn Preservation and Investment Corp., co-founded by
Obama's then-boss Allison Davis -- was partners with Rezko's company in
a 1995 deal to convert an abandoned nursing home at 61st and Drexel into
low-income apartments. Altogether, Obama spent 32 hours on the
project, according to the firm. Only five hours of that came after
Rezko and WPIC became partners, the firm says. The rest of the
future senator's time was helping WPIC strike the deal with Rezko.
Rezko's company, Rezmar Corp., also partnered with the firm's clients in
four later deals -- none of which involved Obama, according to the firm.
In each deal, Rezmar "made the decisions for the joint venture," says
William Miceli, an attorney with the firm.
4. In 1995,
Obama began campaigning for a seat in the Illinois Senate. Among
his earliest supporters: Rezko. Two Rezko companies donated a
total of $2,000. Obama was elected in 1996 -- representing a
district that included 11 of Rezko's 30 low-income housing projects.
5. Rezko's low-income housing empire began crumbling in 2001,
when his company stopped making mortgage payments on the old nursing
home that had been converted into apartments. The state foreclosed
on the building -- which was in Obama's Illinois Senate district.
6. In 2003, Obama announced he was running for the U.S.
Senate, and Rezko -- a member of his campaign finance committee -- held
a lavish fund-raiser June 27, 2003, at his Wilmette mansion.
A few months after Obama became a U.S. senator, he and Rezko's wife,
Rita, bought adjacent pieces of property from a doctor in Chicago's
Kenwood neighborhood -- a deal that has dogged Obama the last two years.
The doctor sold the mansion to Obama for $1.65 million -- $300,000 below
the asking price. Rezko's wife paid full price -- $625,000 -- for
the adjacent vacant lot. The deals closed in June 2005. Six
months later, Obama paid Rezko's wife $104,500 for a strip of her land,
so he could have a bigger yard. At the time, it had been widely
reported that Tony Rezko was under federal investigation.
Questioned later about the timing of the Rezko deal, Obama called it
"boneheaded" because people might think the Rezkos had done him a favor.
8. Eight months later -- in October 2006 -- Rezko was
indicted on charges he solicited kickbacks from companies seeking state
pension business under his friend Gov. Blagojevich. Federal
prosecutors maintain that $10,000 from the alleged kickback scheme was
donated to Obama's run for the U.S. Senate. Obama has given the
money to charity.