Waiting for Blago Verdict, Alexi Rezko Bombshell

Blago's lawyer sweats the verdict, unable to eat or sleep. He thinks he did the best he could. I mean, look at what he had to work with.

And even though Rezko already had a delinquent loan from Broadway Bank, Alexi's family bank still lent him $22.75 million for another big deal. Involving convicted fraudster Nadhmi Auchi, who may have bankrolled Obama's house purchase just a few months earlier through Rezko. Alexi was running for Illinois state Treasurer at the time. Based on his financial acumen.

That lyin Alexi once again.

Will Barack Obama give Alexi Giannoulias another hug when he campaigns for him here on Wednesday. For the bleepin golden Obama Senate seat.

Inside view Blago's home? Nah, clearly too many books. Wired though.

More. From Kirk for Senate:

Giannoulias Misled Voters on Loan to Tony Rezko

“For [Mark Kirk] to say that the bank should have known that Tony Rezko’s company, or that Tony Rezko would have this certain thing 5 or 6 years later, it’s a tough argument for him to make.” – Alexi Giannoulias, Chicago Tribune Editorial Board, March 3, 2010

Chicago Sun-Times reveals Broadway Bank loaned Tony Rezko $22.75 million in 2006, when “Rezko was already politically radioactive”

Background: The Chicago Sun-Times reported today that Broadway Bank loaned $22.75 million to a company partially owned by Tony Rezko in February of 2006, well after Rezko’s corrupt dealings and connections to former Governor Rod Blagojevich were exposed by the media. Alexi Giannoulias was Vice President and Senior Loan Officer of Broadway Bank at the time of the loan and received a $41,000 salary for 2006.

Previous Giannoulias Statement: Alexi Giannoulias has excused Broadway Bank’s loans to Tony Rezko by claiming that the loans were made before Tony Rezko’s crimes were known. On March 3, 2010, Giannoulias told the Chicago Tribune: “For [Mark Kirk] to say that the bank should have known that Tony Rezko’s company, or that Tony Rezko would have this certain thing 5 or 6 years later, it’s a tough argument for him to make.”

Giannoulias Misled Voters on Rezko: Giannoulias made his March 3, 2010 statement despite Broadway Bank’s 2006 loan to Rezko – well after Rezko’s corruption was known. On February 14, 2006, when the loan papers were signed, Tony Rezko’s name had appeared in news accounts nearly 200 times in the previous year, according to Lexis Nexis. By that point, anyone in Chicago with a newspaper subscription knew about Tony Rezko’s corruption.

Giannoulias and Broadway Bank in 2006: Despite Giannoulias’ campaign statement today that “Alexi left daily operation of the bank in September of 2005,” the Chicago Tribune reported that Alexi Giannoulias received a $41,000 salary from Broadway Bank in 2006. On December 20, 2005, the State Journal-Registercurrently serves as vice president and senior loan officer at the four-branch Broadway Bank in Chicago.”

Broadway’s Prior Loans to Rezko: According to an October 13, 2006 report by Chicago Sun-Times, Broadway Bank loaned Tony Rezko $1 million in September 2002. The Chicago Tribune reported that Broadway Bank also loaned $10.9 million to a Rezko-owned company in January 2002. Today’s Sun-Times report brings Broadway Bank’s total loans to Tony Rezko to roughly $34.7 million between 2002 and 2006.

Other Giannoulias-Rezko Ties: Tony Rezko used his influence with Rod Blagojevich to help Alexi Giannoulias’ brother, Demetris. According to the Chicago Sun-Times, Rezko was listed on a Blagojevich “clout list” as Demetris Giannoulias’ sponsor for an appointment to the Illinois Finance Authority.

Broadway Bank Should Have Known about Auchi: According to the Sun-Times, Rezko’s business partner in the real estate venture was Iraqi billionaire Nadhmi Auchi. In 2008, the Sun-Times reported Auchi was convicted in France in 2003 on charges of fraud and was barred from entering the United States.

reported that “Giannoulias noted that he

Who is Tony Rezko?

Rezko convicted; Political insider guilty of money laundering, fraud, aiding bribery

By Bob Secter and Jeff Coen
Chicago Tribune
June 5, 2008

Antoin "Tony" Rezko, whose friendship and fundraising prowess helped shape the political careers of Gov. Rod Blagojevich and U.S. Sen. Barack Obama, was convicted Wednesday of using his political clout to orchestrate a multimillion-dollar kickback scheme.

A federal jury found Rezko guilty on 16 of 24 counts in a trial that exposed an ingrained culture of corruption in Illinois government that has continued to flourish under Blagojevich and comes during a federal probe of his administration.

The verdict in the state's biggest corruption trial since the 2006 conviction of former Gov. George Ryan challenged Blagojevich's claims of being a reformer. It also aggravated a nagging campaign headache for Obama just a day after he clinched the Democratic presidential nomination.

Rezko shifted nervously in his seat moments before the verdict was announced, then blinked and glanced sideways toward the jury box as U.S. District Judge Amy St. Eve began to read the jury's declaration that it had found him guilty.

Wearing a light olive suit and a red tie, Rezko had arrived in court flanked by his two sons. Noticeably absent was his wife, Rita, who had been present during most of the 10-week trial.

The 10-woman, two-man jury deliberated for parts of 13 days before convicting Rezko of abusing his clout with Blagojevich while scheming with Stuart Levine, a longtime Republican insider, to extort millions of dollars from firms seeking state business or regulatory approval. He was convicted of mail and wire fraud, aiding and abetting bribery and of money laundering. He was acquitted of attempted extortion.

U.S. Atty. Patrick Fitzgerald, whose office is leading a probe into Blagojevich's administration and the governor's personal finances, said he hoped the verdict would be a wake-up call for Illinois politicians.

"I hope people step back and say, 'When you do all that stuff, it's going to come back and bite you in a serious way,'" Fitzgerald said. "If the morals don't get to them, then I hope the fear of going to jail does."

Blagojevich, who swept to victory in 2002 with a pledge to clean up Illinois government after the Ryan years, has not been charged with any wrongdoing. But his name was invoked repeatedly during the trial as several witnesses said they heard him give an enthusiastic thumbs-up to the notion of steering state business to campaign donors.

In a brief appearance after the verdict, the governor read a statement expressing his "respect" for the verdict and his sadness for Rezko and his family. But Blagojevich said he was too busy trying to balance the state's budget to answer any questions.

The verdict also held implications for Obama, even though he had no connection to the charges.

Obama struggled during the Democratic presidential primaries to explain his long relationship with Rezko, including a real estate deal involving Obama's South Side house that the two entered into after Obama's 2004 election to the Senate. The jury's decision all but ensures that the Rezko issue will remain politically toxic for Obama heading into the general election battle with Republican U.S. Sen. John McCain.

Just 20 minutes after the verdict was announced, the Republican National Committee churned out an e-mail news release referring to Rezko as Obama's "money man" and declaring that "Obama has maintained a friendship with a now convicted felon."

Like Blagojevich, Obama said he was "saddened" by the verdict. "This isn't the Tony Rezko I knew," Obama said.

Although Rezko had been free on a $8.5 million bail, he voluntarily surrendered to authorities after the verdict and said he wanted to begin serving his sentence immediately. St. Eve deferred a ruling on the length of his sentence until Sept. 3.

The verdict was hardly the end to Rezko's legal peril. He is scheduled to go on trial later this year in a separate federal fraud case involving his attempts to gain financing for an ailing chain of pizza restaurants he once owned. In addition, a judge in Las Vegas issued an arrest warrant last month for Rezko, accused of skipping out on $450,000 in gambling debts he ran up in 2006 even as he knew he was under federal scrutiny in Chicago.

The trial provided ample fodder for cynics who see Illinois' political insiders as a cozy club motivated more by greed than public service or ideology. Witnesses described a who's who of prominent Republicans and Democrats exploiting questionable state deals for financial gain.

Still, jurors said at a news conference after the verdict that they were not distracted by the parade of political heavy hitters, such as Blagojevich, whose names repeatedly surfaced during testimony.

"As a jury, we just tried to focus on the Rezko trial because that's what we were there for," said juror Mona Lisa Mauricette.

Lacking any smoking gun evidence, jurors said they put together the case like a puzzle and gave great weight to not just witness testimony, but also recordings of wiretapped phone conversations and e-mails that prosecutors presented.

Juror Andrea Coleman said the panel basically ignored the long testimony of prosecution star witness Levine, whose drug use and credibility became the centerpiece of withering defense cross-examination.

Prosecutors accused Rezko of misusing his influence with Blagojevich to corrupt two state boards, one that handled a $40 billion pension fund for most Illinois teachers and the other that vetted hospital projects.

The governor leaned heavily on Rezko and fellow fundraiser Christopher Kelly for advice and granted them considerable sway over administration policy and appointments. Kelly, a roofing contractor awaiting trial on unrelated federal tax fraud charges, was named by prosecutors as an unindicted co-schemer in the case against Rezko.

The prosecution case against Rezko was built around Levine, who testified as part of a plea deal he cut in 2006 for a lighter sentence. The federal probe of Rezkowas an outgrowth of an investigation into Levine, and the critical wiretap evidence played at Rezko's trial was recorded from conversations from Levine's home phone.

Testimony produced a series of stunning allegations of misconduct that went well beyond the scope of the criminal charges against Rezko.

Former state official Ali Ata told jurors he bought his post with bribes to Rezko and campaign contributions to Blagojevich. Ata was also one of several witnesses who said Rezko told them of a plot to kill the criminal probe against him by pulling strings with the Bush administration to get Fitzgerald fired.

Investigators have also been conducting probes into state hiring, contracting and board appointments under Blagojevich.

And this. Blago prosecutor U.S. Atty Patrick Fitzgerald's not the only person who can hold a press conference:

Pat Brady, Joe Birkett to Discuss Giannoulias Loan to Rezko and Auchi

Who: Illinois Republican Party Chairman Pat Brady

DuPage County State’s Attorney Joe Birkett

When: Today, August 2, 2010

11:30 a.m.

Where: Clark & Randolph Streets

outside the James R. Thompson Center

Chicago, IL

What: Illinois Republican Party Chairman Pat Brady and DuPage County State’s Attorney Joe Birkett will discuss this morning’s story in the Chicago Sun-Times regarding Broadway Bank’s loan to Tony Rezko and Nadhmi Auchi in 2006 when Alexi Giannoulias was Senior Loan Officer and Vice President of the bank.

And remember, Tony Rezko hasn't been sentenced yet. Obama Blago blog on the NY Times piece on the Blago trial: Three questions for Tony Rezko Will the national press finally pay some substantive attention?

More. The Hill: Illinois Dem faces more questions about Rezko loans

Me. An early post: Auchi was in Wilmette at Rezko's. Wilmette, my suburban Chicago town.

More. From Kirk for Senate: Broadway Bank Total Loans to Criminals Tops $100 million

Nadhmi Auchi

Short Bio: Nadhmi Auchi is a British-Iraqi billionaire who was convicted in France in 2003 on counts of fraud and bribery. Broadway Bank loaned a company jointly owned by Auchi and Tony Rezko $22,750,000 in February of 2006, while Alexi Giannoulias was Vice President and Senior Loan Officer of Broadway Bank. Read more here.

Broadway Bank Loans to Auchi

Recipient Amount Date
Riverside District Development $22,750,000 2/14/2006

Tony Rezko

Short Bio: Tony Rezko, a long-time political insider and ally of former Illinois Governor Rod Blagojevich, was convicted in 2008 of multiple felonies, including money laundering and wire fraud. Broadway Bank loaned Tony Rezko and his companies more than $34 million, most of it in 2006, after his corrupt dealings and connections to Rod Blagojevich were well-known. Read more here.

Broadway Bank Loans

Recipient Amount Date
Chicago-Hudson LLC $10,940,000.00[1] 1/25/2002
Tony Rezko $1,000,000.00[2] Sep-02
Riverside District Development LLC $22,750,000 2/14/2006

---

[1] Rezko partnership files bankruptcy over project, Chicago Tribune, May 23, 2006

[2] More trouble for Rezko, Sun Times, October 13, 2006

Obama Stumped

A nice recap of what's lurking just under the surface in Obama's political stomping grounds. We know Illinois Senate president Emil Jones is the one who gave Obama credit for what little legislative record he had in Illinois, for which the Obama office papers are conveniently sparse. Here are a few cute bits about Emil Jones. Then there is of course the Rev. Jeremiah Wright, but also perhaps the Rev. James Meeks (and Father Michael Pfleger), as well as domestic terrorist Bill Ayers, and Tony Rezko. University of Chicago professor of international politics and author Charles Lipson, "Four Stumps in the Water for Obama":

Rezko's connection to Obama began well before Obama ran for office. Rezko spotted him early, figured he might be a rising star, and helped secure funds for his initial campaigns. Rezko's role raises questions because no one has ever accused him of being a civic-minded fellow who simply enjoys political fundraising because he delights in good government. Skeptical souls want to know what Rezko sought in return for his support and whether he got it.

If Rezko is convicted--a real possibility--those inquiring minds might find out, or at least they would find out what Rezko has to say. If Rezko is staring at a long prison sentence, prosecutors will have a big carrot to dangle in front of him, but only if he names the biggest players.

Where does Obama figure in all this, aside from being a recipient of Rezko's campaign cash? No one knows for sure, but suspicion centers on one particular real estate deal.

What did Rezko want in return? Who knows, but some of the (laughable) testimony in the trial mentioned Rezko thought Gov. Blagojevich might someday run for president. Sun Times:

Levine also said he met up with Rezko's family on a 2004 Puerto Vallarta spring-break trip. He said Rezko told him he had to leave Mexico early to return to Chicago to organize a reception for an Iraqi-born billionaire whom Rezko was trying to get to invest in a big development he planned in the South Loop. Levine flew Rezko's wife and three children back to Chicago with him and his family on a chartered jet.

Levine said his discussions with Rezko included talk of Levine's roles on two state boards: the Illinois Health Facilities Planning Board and the state Teachers' Retirement System board. Levine said Rezko once told him: " 'Stuart, anything that I decide to do at TRS, you will be a partner in.' "

After that, Levine said he and Rezko started to meet more frequently. When Levine and Rezko talked about the governor, Rezko told him he had high aspirations for Blagojevich.

"He had raised a great deal of money for Gov. Blagojevich," Levine said. "He had great hopes and expectations that Gov. Blagojevich would run for president."

This of course calls Rezko's judgment into question, but hey, he's not running for president, just stuck in jail as a flight risk. Who was that Iraqi born billionaire (Obama met at the Four Seasons at Tony Rezko's request) anyway, hmm?

Obama may be stumped for an answer on why he made the judgment to call on Tony Rezko one more time to give him the Hyde Park house tour, even as Rezko faced criminal charges.

And he may be stumped on a few other matters as well.

UPDATE: So perhaps Obama is not inevitable, perhaps Hilllary has a chance. Barack getting fact-checked in another area--WaPo, "Obama Overstates Kennedy's Role in Helping His Father":

Addressing civil rights activists in Selma, Ala., a year ago, Sen. Barack Obama traced his "very existence" to the generosity of the Kennedy family, which he said paid for his Kenyan father to travel to America on a student scholarship and thus meet his Kansan mother.

(!) Cringe-worthy.

"So the Kennedys decided 'we're going to do an airlift,' " Obama continued. " 'We're going to go to Africa and start bringing young Africans over to this country and give them scholarships to study so they can learn what a wonderful country America is.' This young man named Barack Obama got one of those tickets and came over to this country. He met this woman whose great-great-great-great-grandfather had owned slaves. . . . So they got together and Barack Obama Jr. was born."

A more accurate version of the story would begin not with the Kennedys but with a Kenyan nationalist leader named Tom Mboya, who traveled to the United States in 1959 and 1960 to persuade thousands of Americans to support his efforts to educate a new African elite. Mboya did not approach the Kennedys for financial support until Obama Sr. was already studying in Hawaii.

This dredges up another fudge:

Obama's Selma speech offers a very confused chronology of both the Kenya student program and the civil rights movement. Relating the story of how his parents met, Obama said: "There was something stirring across the country because of what happened in Selma, Alabama, because some folks are willing to march across a bridge. So they got together and Barack Obama Junior was born. So don't tell me I don't have a claim on Selma, Alabama."

After bloggers pointed out that the Selma bridge protest occurred four years after Obama's birth, a spokesman explained that the senator was referring to the civil rights movement in general, rather than any one event.

Well. And of course we just had the Hillary dust-up. For some reason these Dems don't feel heroic enough on their own merits.

UPDATE: I should have given the background on Obama and Meeks and Pfleger. Dating back to his 2004 run for Senate, Cathleen Falsani's religion column in the Sun Times:

"The biggest challenge, I think, is always maintaining your moral compass."

Friends and advisers, such as the Rev. Michael Pfleger, pastor of St. Sabina Roman Catholic Church in the Auburn- Gresham community on the South Side, who has known Obama for the better part of 20 years, help him keep that compass set, he says.

"I always have felt in him this consciousness that, at the end of the day, with all of us, you've got to face God," Pfleger says of Obama. "Faith is key to his life, no question about it. It is central to who he is, and not just in his work in the political field, but as a man, as a black man, as a husband, as a father.... I don't think he could easily divorce his faith from who he is."

Another person Obama says he seeks out for spiritual counsel is state Sen. James Meeks, who is also the pastor of Chicago's Salem Baptist Church. The day after Obama won the primary in March, he stopped by Salem for Wednesday-night Bible study.

Oh, and Father Pfleger invited the Rev. Wright over Friday night. Story. Video.

What does it say about Barack Obama when he sought out the support of the three most notorious politicized liberal preachers in Chicago?

One more note--CBS2 political reporter Mike Flannery brought up Bill Ayers last night on his show. Via Marathon Pundit. More on Ayers.

P.S. Dean Barnett, Weekly Standard:

In terms of personal accomplishments and service to country, Obama's cupboard is virtually bare next to McCain's. The same goes with political actions. You don't have to parse a John McCain speech to figure out where he stands. Heck, you don't even have to listen to McCain's speeches to know where he stands. From campaign finance to immigration to the Bush tax cuts to the Iraq War, McCain has been a man of action rather than words. Such men develop records and reputations. They become known quantities.

On the other end of the spectrum stands Barack Obama. Obama lacks a biography that tells you where he stands. He also has taken no defining or even noteworthy political action in his short time in public life.

Obama All Over

Barack Obama is all over the news today, and most of it's not good. Is it all over for Obama? Most probably not for the Democrat primary, but he's in trouble for the general.

Last night I wrote about the breaking news on the Tony Rezko trial, Obama for the first time placed at a party at Rezko's house in Wilmette in the company of billionaire British-Iraqi financier Nadhmi Auchi. Auchi is an alleged tool in the UN/Saddam Hussein oil for food scandal and was in Chicago to discuss a huge real estate deal in the South Loop that Rezko was putting together.

There were lots of Illinois Dem luminaries at that party, but it took Stuart Levine to reveal at the Rezko trial that Sen. Hope Himself--the post-political presidential candidate without peer, most especially in his own estimation--graced the well-heeled gathering with his presence.

We didn't hear about this from Sen. Ethics, Sen. Transparency, Sen. Cling to the Rev. Wright and his wrong-headed, hate-filled rants, Sen. Judgment--no! Tribune this morning:

Just weeks after winning the Democratic U.S. Senate primary in 2004, Barack Obama was the guest of developer Antoin "Tony" Rezko at a party for a controversial British billionaire whom Rezko was trying to lure into an investment, a witness testified Monday at Rezko's corruption trial.

(Auchi is appealing his fraud conviction in France. For working with Saddam Hussein in the UN Oil for Food scandal to bribe public officials.)

Though not flatly disputing Levine's assertion, Obama spokesman Ben LaBolt repeated what the senator has said: "Sen. Obama does not recall meeting Nadhmi Auchi at any time or on any occasion, and this includes any event that may have been held for Mr. Auchi," LaBolt said.

In his March interview with the Tribune, which was supposed to lay all these pesky questions to rest, Obama described the now radioactive Rezko as a not too close friend. More:

Otherwise, Obama said he and Rezko met for breakfast or lunch infrequently, dined once in Chicago with their spouses, and got together another time with their wives in Lake Geneva, Wis., where Rezko owned a home. Aside from the fundraiser, no mention was made of any other get-together at Rezko's home.

Levine testified that he was at the Auchi party and saw the Obamas there as well as other political luminaries, including Lt. Gov. Pat Quinn and various cabinet officials in the Blagojevich administration.

Obama doesn't recall that, yet earlier that same evening he dropped by the Four Seasons presumably also at Rezko's request, a meeting he admitted to, though he says he doesn't remember Auchi. Here's how one witness described that:

"It was a very innocuous, almost serendipitous, ad hoc thing," Chicago real estate lawyer Anthony Licata, who was also there, told the Tribune. "Barack happened to be in the same building at a campaign event that night, and he stopped by to say hello. I'm not even sure he knew who those guys were."

But if Levine's contention is correct, Obama was back at another Rezko event tied to the Roosevelt Road investment a few weeks later, this time as the freshly minted Democratic Senate nominee riding a crest of national publicity.

Auchi came to the rescue as Rezko's business ventures began to crumble and his legal troubles mounted in recent years.

And he also gave Rezko a huge cash infusion right before Rezko's wife bought the Hyde Park lot next to Obama's on the same day he bought his--just innocuously, almost, just almost serendipitously.

UPDATE: As more dates keep coming up, here's the detail from the Kankakee paper I cited last night:

Auchi did visit the United States in 2004. Illinois Lt. Gov. Pat Quinn headed a welcoming delegation that greeted Auchi when his private plane touched down at Chicago's Midway Airport.

"We talked mainly about the late King Hussein of Jordan and Queen Noor," recalled Quinn, who rode downtown with Auchi and his family. He said he later attended a party for Auchi held at Rezko's home.

Auchi was the guest of honor at a lavish dinner party thrown by Rezko at the Four Seasons Hotel. Blagojevich was on hand for the festivities and posed for photos with the visiting tycoon.

"He has not met with or talked to Mr. Auchi since then," Blagojevich spokeswoman Abby Ottenhoff said.

Obama, whose presidential run has been bedeviled by his relationship with Rezko, has said he attended a Rezko party at the Four Seasons but doesn't remember meeting Auchi. It isn't clear it was the same party.

"Tony called and asked if I could stop by because he had a number of friends that he had invited to dinner and he wanted me to meet them," Obama told the Chicago Sun-Times last month. "I remember meeting a bunch of people who I had not met before. I frankly don't remember what their names were. Business was not discussed at the meeting."

Tribune, same story as above:

A published report last year highlighted a small private dinner Rezko hosted in February of that year at Chicago's Four Seasons Hotel for two bankers from Qatar. Obama, then in the thick of his Democratic primary race for the Senate, took a brief detour from the campaign to pop in on the event.

There may have been even more meetings with Auchi. What dates? Sun Times:

Levine testified Rezko had to leave Mexico early to host Auchi. So Levine chartered a private jet to fly Rezko's wife and children -- as well as his own family -- back to Chicago on April 3, 2004.

That night, Levine testified, he attended the reception, which was arranged to interest Auchi in investing in Illinois.

Gov. Blagojevich hosted a separate dinner party for Auchi two days earlier, at the Four Seasons hotel in downtown Chicago, the Sun-Times has reported.

So there was a time lag of two days between the Four Seasons affair and the Rezko reception at his home. Surely the reception would have been even more memorable? Yet Obama disclosed at least one of the Four Seasons meetings but not the Rezko reception for Auchi--who was the guest of honor. And presumably Obama was much feted as well, given his recent win in the Senate primary. Hard to believe they didn't meet and talk. Earlier Times of London story, where Mr. Auchi resides:

Mr Auchi visited the United States in 2004. Pictures show him meeting Emil Jones, the president of the Illinois state senate, an ally of Mr Obama, a former state senator.

Both Mr Auchi and Mr Obama say they have no memory of meeting each other. But, according to a source, the two may have had a brief encounter at the Four Seasons Hotel in Chicago where Mr Auchi’s visit was being honoured with a dinner attended by the Governor when Mr Obama, coincidentally in the hotel, dropped in.

An aide to Mr Obama said he did attend an event at the Four Seasons at which Mr Rezko was present but does not remember meeting Mr Auchi. "He shook a lot of hands and met a lot of people," the aide said. "We do not remember individual people."

The Return of Rezko

Newsweek's Michael Isikoff explores the Obama/Rezko relationship vis a vis the purchase of Obama's Hyde Park home. The filing of a new lawsuit by a whistleblower from Mutual Bank, the bank which we now learn financed Rita Rezko, has also resulted in a new revelation that the US Attorney's office has subpoenaed the Obama/Rezko loan file. The whistleblower has charged he was dismissed for his assessment that the Rezko lot was worth $125,000 less than the full price paid by Rita Rezko, financed with a loan from Mutual Bank, that this assessment was removed from the loan file given to federal prosecutors.

If Barack Obama paid $300,000 less than full price, and Rita Rezko paid full price--and possibly an even more inflated one than was first known--this raises the likelihood of a major favor being done for Barack Obama by Tony Rezko. The owners wanted to sell both lots at the same time.

While Isikoff raises the new issue of the alleged inflated value of the Rezko lot adjoining Obama's (essentially Obama's side yard) he ignores a few points about this strange deal.

All of political Illinois knew Tony Rezko was radioactive before Barack Obama bought the house--not before he later essentially bought back a strip of his side yard, uh Rezko's adjoining lot.

Obama invited Rezko to go with him on a tour of the house before he bought the house (wink, wink)

The extra lot was essentially the side yard of the home Obama wanted to buy--but he couldn't afford to buy both, in fact buying the house alone was a stretch.

Barack Obama has been evasive about whether he discussed that it would be nice to keep the lot next door undeveloped. This is not credible. Especially, given that...

...Barack Obama bought a strip of land from Rezko to make his lot bigger--an action that could reasonably be assumed to make Rezko's lot unmarketable.

Barack Obama mowed or had mowed Rezko's lot. Rezko took responsibility to build a fence between the two lots--but stiffed the contractor.

These are my initial thoughts. As John Fund of the WSJ has pointed out--the Obamas have not released the most important document related to this transaction, which shows the flow of funds for the settlement.

And then there remains the question of Nadhmi Auchi lurking in the background--who gave the Rezkos a major cash infusion just prior to the house purchase. And then there's the related issue of Barack getting a discount on his own loan.

Barack Obama has not been forthcoming on his relationship with Tony Rezko. This is a pattern. And that's why we have the return of Tony Rezko.

I will look at this more carefully, with more links in the next few days.

UPDATE: John Kass' column in the Chicago Tribune:

Patti Blagojevich, the governor's wife and a real estate agent, has not been charged with anything either, but there is federal heat on her real estate deals, particularly those involving Rezko and Mutual Bank of Harvey boss Amrish Mahajan. To wit: Mahajan's wife, Anita,is awaiting trial on state felony charges, accused of bilking millions from taxpayers for phony state drug tests her company never performed. Just before investigators raided the company's offices, the computers magically vanished. Mahajan's bank funneled that loan to Rezko's wife, Rita, so she could purchase that lot in the Kenwood neighborhood, in the strange deal that allowed Barack Obama to buy his dream house. If Patti is ever charged, expect Rod to sing like Elvis did in "Jailhouse Rock," one of The King's better films.

Latest post on Pattycake Patti here. And here's an early Rezko post. You could look at it that we Illinois taxpayers helped pay for Barack and Michelle's dream house, through all those millions bilked by Mutual Bank. Here's a description of Barack's house:

The couple wanted to step up from their $415,000 condo. They chose a house with six bedrooms, four fireplaces, a four-car garage and 5 1/2 baths, including a double steam shower and a marble powder room. It had a wine cellar, a music room, a library, a solarium, beveled glass doors and a granite-floored kitchen.

The Obamas had no prior relationship with Northern Trust when they applied for the loan. They received an oral commitment on Feb. 4, 2005, and locked in the rate of 5.625 percent, the campaign said. On that date, HSH data show, the average rate in Chicago for a 30-year fixed-rate jumbo loan with no points was about 5.94 percent.

Rezko on the Radar for Obama

Hitting the headlines here in Chicago, Rezko news vis-a-vis Sen. Barack Obama is just surfacing on the radar of the MSM.

Recently a RezkoWatch site has sprung up, presumably to help Hillary, with crossposts at the Daily Kos.

As the Rezko trial ramps up, the Sun Times ran a story yesterday, "Decoding Rezko", a two page spread. More today: "The Witness List", Insiders to testify on Rezko's clout": (No mention of "unnamed political candidate" in this piece):

Tony Rezko goes on trial March 3 in a complicated corruption case that centers on allegations of influence-peddling in Gov. Blagojevich’s administration.

The case, which has drawn national attention because of Rezko’s long ties to Democratic presidential contender Barack Obama, centers on a string of alleged kickback schemes. Some of the people involved, prosecutors say, wanted a cut of the billions of dollars invested by the state Teachers’ Retirement System, the pension plan for all public schoolteachers outside Chicago. [snip]

The case has drawn national attention because of Rezko’s fund-raising ties to Democratic presidential contender Barack Obama, who was involved in a real estate transaction with Rezko’s wife at a time in 2006 when Rezko was widely known to be under federal investigation. [snip]

Rezko, 52, of Wilmette was jailed last month after prosecutors said he received a $3.5 million payment from an Iraqi-born billionaire and was taking other steps that made it appear he might flee the country.

What about this Iraqi-born billionaire? (And how did he get his billions? How did anyone make money in Iraq before the war?) Another story here:

Gov. Rod Blagojevich's chief fundraiser has arranged to get a loan from the same Iraqi billionaire whose $3.5 million payment got another member of the governor's inner circle thrown in jail.

Christopher Kelly, head of Blagojevich's campaign fund in both of his races for governor and now under federal indictment, pledged all of his shares in a Nevada land partnership as collateral in exchange for the loan, according to state records reviewed by The Associated Press.

The loan came from General Mediterranean Holdings, a company based in Luxembourg and headed by Nadhmi Auchi, a London-based Iraqi who is currently appealing a fraud conviction in France.

''I don't want to comment,'' Kelly's defense attorney, Michael D. Monico, said after conferring with the south suburban roofing contractor.

Antoin ''Tony'' Rezko, a major campaign fundraiser for Blagojevich and Sen. Barack Obama who is facing a federal fraud trial next month, was jailed Jan. 28 after prosecutors said a $3.5 million payment from Auchi showed he had access to overseas money that could enable him to flee.

Seamy stuff. And who is Nadhmi Auchi?

Auchi was listed on the last Forbes magazine list as the 279th richest person in the world, with an estimated net worth of $3.1 billion. He owns a portion of a 62-acre tract just south of downtown Chicago in which Rezko also is a shareholder.

Auchi, who visited Chicago in 2004 and posed for a photograph with Blagojevich, was barred from entering the country in 2005, federal prosecutors say.

They said in recently filed court papers that Rezko wrote to the State Department in November 2005 to request that Auchi be allowed to enter the United States ''and, it appears, asked certain Illinois government officials to do the same.''

Alasdair Pepper, a London attorney representing Auchi, said the magnate's fraud conviction in France is currently on appeal and ''he absolutely denies that he had anything to do with any fraud.''

Auchi has been accused of no wrongdoing in connection with his dealings with Rezko and Kelly. There was no indication that the loan to Kelly was in any way improper.

General Mediterranean is a holding company with assets around the world. The $3.5 million to Rezko was wired from an account in Beirut, Lebanon, to a Chicago bank in April 2007, according to prosecutors. They said it was disbursed within a week.

More background and questions from The Swamp last month. And today in the Trib. Also here.

Salon Feb. 1st starting the ball rolling on the next phase. "How Close were Barack Obama and Tony Rezko?":

CHICAGO -- During his rise through Illinois politics, it was inevitable that Barack Obama would encounter a suckerfish like Tony Rezko. Illinois has more governmental bodies than any other state -- over 500 in Cook County alone -- and therefore, more opportunities for operators. [snip]

Obama's dealings with his hinky friend have never led him afoul of the law, but they show that, despite his high-minded politics, he was no purer -- or no savvier -- than Illinois' biggest hacks in his weakness for a generous contributor. He wouldn't even say no when Rezko cooked up a deal to help the newly elected senator buy a gracious Georgian-revival home.

Rezko, after all, built part of his fortune by exploiting the black community that Obama had served in the state Senate, and by milking government programs meant to benefit black-owned businesses. But Obama took Rezko's money even after the businessman was sued by the city of Chicago for failing to heat his low-income apartments, and even after Rezko was caught using a black business partner to obtain a minority set-aside for a fast-food franchise at O'Hare Airport.

Now Rezko is wearing an orange jumpsuit. And Obama may spend the rest of the presidential campaign wearing the jacket for his friendship with the fixer.

MSNBC's First Read picks it up. Seattle Times with another piece here by an AP writer. From my earlier post:

Look, the Dems are incestuous (and glitzy socialist in name only socialites) with their "affordable" housing slumlord scams, government subsidies to politically-connected developers who then turn around and donate to their campaigns and their personal real estate. (Sometimes they push eminent domain, but usually they don't need to.) The real estate guys get the upfront fees and the buildings fall apart, leaving tenants living in squalor.

And this one, "Obama Haunted by Sleaze".

UPDATE: WaPo's The Trail Feb. 5th, Super Tuesday, "The Obama Clock".

Related posts: Obama Girl GOTV Not, Obama Worship and Other Stories, Chicago's Subway Series, Obama Most Liberal, You Gotta See This, Mr. Rezko and Mr. Obama

Obama: Follow the Money

UPDATE (more updates below): John Fund, WSJ, "Obama and Chicago Mores". And the Tribune blogs the Rezko trial--all Rezko all the time site.
***
The trial of Barack Obama's fundraising friend Tony Rezko starts today. I'm no journalist, but as I understand it one of the first rules of investigative journalism is to follow the money. Here's an excerpt from my first follow the money piece, back in May, 2006:

In Chicago, developers have sought major subsidies. Rezko had an major application pending for a TIF last year, when some of his other activities came under investigation, so the Metropolitan Planning Council backed away from its support. In Crain's:

A real estate developer whose dealings are under investigation by City Hall is a leading member of an investment group that is asking the city for what would be the largest property-tax subsidy ever for a Chicago development.

Seeking as much as $140 million in tax-increment financing (TIF) is a partnership headed by Antoin S. "Tony" Rezko, whom the city recently accused of benefiting from a phony minority front for two Panda Express restaurants at O'Hare International Airport. The money would cover infrastructure costs for Riverside Park, a massive $1.7-billion mixed-use project the partnership plans to build along Roosevelt Road in the South Loop. Yet the recent news about Mr. Rezko's O'Hare restaurants — breaking just days before the city received the TIF request — was less than optimal timing.

Mr. Rezko first caught my notice because he lived in my village of Wilmette and was allied with Governor Blagojevich and local state senators and representatives in targeting lucrative real estate on the North Shore. This area promised particular profitability for developers with fat upfront fees and government subsidies under the guise of bringing in "affordable" housing. Does this sound familiar?

Again, does this sound familiar on the South Side of Chicago? On an international scale? Who owns Riverside Park now? (Because Rezko is broke, and was broke in 2005 when he bought the neighboring lot to Obama's under his wife's name. His wife was broke too, but her property was sheltered from the law. And when she sold a strip of it to Obama for $100,000 that was sheltered too. Nice piece of change.) Who gave Rezko a hidden loan that landed Rezko in jail before his trial? Nadhmi Auchi. Tribune:

Nadhmi Auchi, who heads General Mediterranean Holding SA, or GMH, bought about 15 Wisconsin pizzerias from Rezko, court records show, and took a stake in Rezko's most ambitious real estate venture—his effort to develop a 62-acre site at Roosevelt Road and Clark Street.

Rezko's lawyers said the $3.5 million was a loan primarily provided to pay legal fees and family expenses. It was to be repaid in a debt restructuring involving the 62-acre development, the defense said.

From the Times of London story:

An aide to Mr Obama said he did attend an event at the Four Seasons at which Mr Rezko was present but does not remember meeting Mr Auchi. "He shook a lot of hands and met a lot of people," the aide said. "We do not remember individual people."

Prosecutors say that, after Mr Auchi was unable to enter the United States in 2005, Mr Rezko approached the US State Department to get him a visa and apparently asked "certain Illinois government officials to do the same." Mr Obama denies he was approached. Mr Auchi's lawyer has emphasised to The Times that it would be entirely false to imply that money had been lent by GMH to Mr Rezko in return for Mr Rezko seeking to assist Mr Auchi to obtain a visa. The two men's relationship, the lawyer stressed, was a business one.

Where does Barack Obama fit in? How come he was so important to Rezko and Auchi? Auchi would still like a visa to come here--though he somehow managed it in 2004. Sun Times:

Auchi was listed on the last Forbes magazine list as the 279th richest person in the world, with an estimated net worth of $3.1 billion. He owns a portion of a 62-acre tract just south of downtown Chicago in which Rezko also is a shareholder.

Auchi, who visited Chicago in 2004 and posed for a photograph with Blagojevich, was barred from entering the country in 2005, federal prosecutors say.

None of this may be illegal, but all of this makes me uneasy.

I would imagine Hill and Bill's as yet unreleased tax returns show some income that would make Americans uneasy as well.

But what does this say about Obama's judgment--his counter to his obvious lack of experience?

Maybe he'll just take the Al Gore line--no controlling legal authority. But then he was a professor of constitutional law. He should know...better. And he wants to be President--the commander in chief.

Do we trust Barack Obama to do what's right?

For a cause greater than himself?

UPDATE: Robert Novak, "Obama's Former Friend":

But the case against Rezko prepared by the always determined U.S. Attorney Patrick Fitzgerald poses possible new pitfalls for the Democratic front-runner by introducing into the proceedings Auchi, who has been convicted on corruption charges in France and given a suspended sentence. While his friends describe Auchi and his family as victims of Saddam Hussein's tyranny, Pentagon sources call him a "bagman" who laundered money in London for the Iraqi dictator.

Attracting attention now. Howard Kurtz, WaPo:

During a campaign stop in Ohio last week, ABC's Jake Tapper asked Barack Obama about what he called "an attempt by conservatives and Republicans to paint you as unpatriotic."

Tapper's litany: "That you didn't put your hand over your heart during the national anthem, that you no longer wear an American flag on your lapel pin, that you met with some former members of the Weather Underground, and now they are questioning your wife's comments when she said she hasn't been proud of the U.S. until just recently."

Obama dismissed the criticism as "nonsense." But did the exchange mark the end of a long period in which the media have gone easy on the man who could all but clinch the Democratic nomination in tomorrow's primaries?

Nonsense? We'll see. These things resonate with the American people. And Kurtz mentions Obama voted present in Illinois over 130 times. Present=AWOL. No doubt the MSM has given Obama the benefit of the doubt. Could be that star treatment is over. Obama has not been vetted by the liberal-leaning MSM to date--because he is a liberal. The most liberal Democrat candidate to run for president since George McGovern.

UPDATE: Financial Times, "Obama could feel heat from Rezko trial" (I didn't realize it was quite this bad):

Given Chicago’s enduring reputation as America’s unofficial capital of political sleaze, a corruption trial in the city does not normally attract the attention of the rest of the country.

More than 1,000 local and state governmental officials and business people have been convicted on corruption charges in the city since the 1970s.

And this:

While there is no suggestion the deal was illegal or that Mr Rezko received any payback, Cindi Canary, director of the Illinois Campaign for Political Reform, an non-partisan group, says Mr Obama has changed his account several times. “Rezko has apparently gone from somebody he hardly knew to someone he toured the house with before he bought it.”

Quite the post-political guy, our Barack. A real stranger to the truth. The FT also mentions Lester Crown, Louis Farrakhan, Jeremiah Wright, and our man Alexi "Granny-Grifter" Giannoulious and Alexi's buddy "Jaws" Giorengo. Just a little local color. Maybe someone's been reading the blog.

ABC. Newsweek. Times of London. Chicago Tribune.

UPDATE: Sun Times, Rezko's Day in Court, some things to know:

2. Hottest trial in town: If you want a seat, come early.

It's the highest-profile case since last year's Conrad Black trial, which could mean seats will be scarce in U.S. District Judge Amy St. Eve's 12th floor courtroom, at least during the opening days. "We did plan for an overflow and will have an overflow room available," U.S. District Clerk of Court Michael Dobbins said. The extra spectators will go to room 1719 in the federal courthouse, which will have an audio and video feed of the trial.

UPDATE: Clinton campaign calls for Obama to release all correspondence with Rezko.

UPDATE: John Batchelor, Human Events on the handshake between Auchi and Obama at the Four Seasons in 2004:

The most an unnamed aide for Mr. Obama who was present that evening has told the Times about the handshake was, "We do not remember individual people," which is possible but is not a sound response when the question concerns a billionaire investor in the room with the governor of the state and the hot new U.S. Senate contender.

Why was Mr. Auchi in the luxury room? [snip] And yet the handshake by Mr. Obama, a vivid opponent of the Iraq war, did more than look away from the fact that Mr. Auchi had a Baathist party past in Iraq that was associated with Saddam Hussein and a present that was associated with felony in France and unusual schemes in free Iraq. Mr. Obama's handshake also meant that the candidate was willing to entangle himself in the strange connection between Mr. Auchi and Mr. Obama's long time supporter and fund-raiser Mr. Rezko.

Related posts: Hardball Obama II, All (about ME) Obama, Oliver Stone Hearts, Obama's "Foreign Policy" Advisers, Who Gets the Girl?, Mocking Barack Obama, McCain Hopes Castro Meets Marx, Clout List: Rezko Realtor on Obama Sale, The Obamas Get a Look, Obama Buyer's Remorse, Obama Toured with Rezko, Rezko on the Radar for Obama, sOap, Obama Responds on Che Flag

Governor Big Guy

GOVERNOR/HOPEFUL	TOTAL	YEARS	AVG./YR.
Rod Blagojevich	$57.8m	6.5	$8.9m
George Ryan	$24.4m	29	$0.8m
Jim Ryan	$21.1m	13	$1.6m
Judy Baar Topinka	$15.4m	27	$0.6m
Jim Edgar	$9.2m	22	$0.4m
Glenn Poshard	$5.1m	2	$2.6m
Dawn Clark Netsch	$2.4m	20	$0.1m

UPDATE: Rezko pal an Obama superdelegate. (more updates below)
***
Levine says Blagojevich knew. Sun Times:

"If they're going to do this to me and think they're going to blackmail me -- I'm going to take them down," Rosenberg told GOP power-broker-turned-Blagojevich-ally William Cellini, Cellini says on one recording.

Rosenberg's threats to go to "the G" and blow the whistle set off a frenzied series of phone calls and meetings among Blagojevich insiders strategizing how to finesse Rosenberg. At one point, Blagojevich adviser and fund-raiser Chris Kelly called Cellini on one cell phone and, at the same time, called Levine on another, according to the recordings.

Kelly, heard in court on a recording for the first time, arranged for a meeting later in Rezko's office. It took place May 11, 2004, with Cellini, on a speaker phone from Springfield, Levine, Kelly and Rezko.

Tribune:

Rezko said Blagojevich was told what was going on and agreed with Rezko's plan to handle it, Levine testified.

But Blagojevich told Rezko something else as well, Levine said.

"He felt that this was the last thing that Mr. Rosenberg should get from the state," Levine said the governor had told Rezko.

Political fixer William Cellini and Levine spoke by phone the next day, and federal agents were listening in.

Levine told Cellini about Blagojevich because Cellini had hung up from the meeting before Rezko had mentioned the governor.

Cellini said he had received similar information about Blagojevich through Rezko.

"The big guy said, 'Rosenberg means nothing to him,' " Cellini said on the call.

Sun Times:

Blagojevich hasn't been charged with any crimes. And again Wednesday his office denied ever awarding state contracts "based on campaign contributions. We never have. We never will. And anyone who suggests otherwise is not telling the truth," Blagojevich press secretary Abby Ottenhoff said.

The recall authority has passed the Democrat-run Illinois House. The Senate needs to act by May 4th to get the measure on the November ballot. As far as the tally of campaign contributions that just sprang up out of nowhere (as the state spiraled into bankruptcy) look to the above chart for the big bucks. Governor Big Guy.

UPDATE: Mention of Obama's old legal boss turned developer Allison Davis. Tribune (Playing Hardball, 4/2 11:41 am):

In another recorded call, Levine and Republican political insider William Cellini joke about Rosenberg's plight and how they think they have caught the financier in a lie as he tries to get his troubled investment deal back on track.

Rosenberg, they believed, dispatched developer Allison Davis to Rezko to make a peace offering on Rosenberg's behalf. Davis and Rezko had once been partners in South Side real estate ventures. Davis allegedly told Rezko that Rosenberg wanted to help out with fundraising for Rezko's close friend, Gov. Rod Blagojevich. The move allegedly was designed to sway Rezko into helping out with Rosenberg's pension deal.

On the wiretap, Cellini said he questioned Rosenberg about the Davis entreaty, and Rosenberg flatly denied he had anything to do with it.

Rosenberg, Cellini said, claimed he had nothing but disdain for Rezko. "I don't want anything to do with that guy," Cellini quoted Rosenberg as saying.

Rosenberg then said he considered Rezko and fellow Blagojevich fundraiser Christopher Kelly the two most likely members of the governor's inner circle to end up in prison someday, Cellini added. "If they're not under investigation now, they're being monitored in every way," Cellini quoted Rosenberg as saying.

UPDATE: Ed at HotAir:

The exposure of this shakedown racket shows that Rezko is no anomaly in Illinois politics. This testimony also highlights the deeply corrupt nature of Tony Rezko and his associates in that environment. Rezko was no overeager fundraiser who got tripped up by Byzantine campaign-finance regulations, but a political gangster who worked to abuse government power for his own ends. His association with Barack Obama should send up all sorts of red flags — and by the time the trial is over, perhaps it will.

Related posts: Governor Church and State, Feeling the Heat

Obama-Rezko Bombshell

Rezko ripples, we expected that (see the Sun Times story below), but this is a bombshell. From tomorrow's Times of London:

A British-Iraqi billionaire lent millions of dollars to Barack Obama's fundraiser just weeks before an imprudent land deal that has returned to haunt the presidential contender, an investigation by The Times discloses.

The money transfer raises the question of whether funds from Nadhmi Auchi, one of Britain’s wealthiest men, helped Mr Obama buy his mock Georgian mansion in Chicago.

A company related to Mr Auchi, who has a conviction for corruption in France, registered the loan to Mr Obama's bagman Antoin "Tony" Rezko on May 23 2005. Mr Auchi says the loan, through the Panamanian company Fintrade Services SA, was for $3.5 million.

Three weeks later, Mr Obama bought a house on the city's South Side while Mr Rezko's wife bought the garden plot next door from the same seller on the same day, June 15.

More:

An aide to Mr Obama said he did attend an event at the Four Seasons at which Mr Rezko was present but does not remember meeting Mr Auchi. "He shook a lot of hands and met a lot of people," the aide said. "We do not remember individual people."

Prosecutors say that, after Mr Auchi was unable to enter the United States in 2005, Mr Rezko approached the US State Department to get him a visa and apparently asked "certain Illinois government officials to do the same." Mr Obama denies he was approached. Mr Auchi's lawyer has emphasised to The Times that it would be entirely false to imply that money had been lent by GMH to Mr Rezko in return for Mr Rezko seeking to assist Mr Auchi to obtain a visa. The two men's relationship, the lawyer stressed, was a business one.

So maybe Barack should have invited Mr. Auchi to tour the house before he bought it. [Detailed timeline here.]

Sun Times, Obama's name may surface in Rezko's trial:

In a nine-page ruling this afternoon, U.S. District Judge Amy St. Eve said she would allow federal prosecutors to present evidence about a portion of a $375,000 finder’s fee that a Rezko associate, Joseph Aramanda, obtained through an alleged kickback scheme orchestrated by Rezko.

Aramanda allegedly donated to an unnamed political candidate, presumably Obama, as Rezko had reached the limit. At least one other donor was allegedly instructed by Rezko to do the same. The Obama campaign claims ignorance. The Sun Times goes on:

Rezko was once part of Obama’s senatorial finance committee.

Informed of the judge’s ruling, Obama presidential campaign spokesman Bill Burton said, “We had no knowledge of any straw donations and have returned any of the donations about which we have any reasonable question.

“By now it is well established that Sen. Obama is not involved in the matters at issue in the [Rezko] trial.”

Well established non-involvement. Supposedly this is all old news. Good luck with that.

UPDATE: IBD with more on Obama's backers, including those in Washington. And after his denying it for months, Governor Rod Blagojevich, who is not running for president, is revealed to be Public Official A.

UPDATE: The Politico reports that Obama is stiffing, stifling the national press corps:

Around the Super Tuesday primary elections on Feb. 5, the barriers around the press area at Obama events went from easily penetrable, fabric rope lines to interlocking metal gates manned by vigilant gatekeepers.

Bottom line: The media can no longer roam free.

Gee I wonder why? (see above for all the more reason, beyond a traditional front-runner's tendency to play it safe and spend more time with the local press). And the Politico reporter points out this contrasts poorly with McCain's access. Even Hillary is more open.

Related posts: All (about ME) Obama, Oliver Stone Hearts, Obama's "Foreign Policy" Advisers, Who Gets the Girl?, Mocking Barack Obama, McCain Hopes Castro Meets Marx, Clout List: Rezko Realtor on Obama Sale, The Obamas Get a Look, Obama Buyer's Remorse, Obama Toured with Rezko, Rezko on the Radar for Obama, sOap, Obama Responds on Che Flag

Rezko Talking

WaPo picks up on the paragraph U.S. Atty Patrick Fitgerald referenced in the complaint--Rezko is definitely talking to prosecutors. What do you NObama? What does Rezko know:

The ongoing investigation is sure to present political complications for the Obama Justice Department, because advisers close to the president-elect are referenced in the criminal complaint and will be interviewed by federal prosecutors, legal analysts said. A lawyer for the Obama transition team did not return calls or e-mails yesterday. [snip]

Over Obama's political career, Rezko raised contributions for him and introduced him to powerful aldermen. Rezko even offered real estate advice when Obama bought an expensive house on Chicago's South Side.

The two met in the early 1990s. Obama has said he was finishing his studies at Harvard Law School when Rezko and his business associates first contacted him about a job possibility in development. Obama declined a job offer from Rezko, instead accepting a position at a small Chicago law firm that would later represent Rezko's company and whose senior partner would in time go into business with Rezko.

A few years later, Obama entered politics. Records list three checks arriving on his first day of fundraising for the Illinois Senate. Two of them, totaling $2,000, came from companies associated with Rezko. Over time, the businessman and Obama began meeting regularly for lunch and dinner, occasionally with their wives.

After he joined the U.S. Senate in 2005, Obama took Rezko on a tour of a six-bedroom house in an upscale Chicago neighborhood. Rezko recommended that Obama buy the home and, on the day Obama closed the deal, Rezko's wife closed on an adjoining lot. The Rezkos resold a portion of their lot to Obama to expand his yard.

Lawyers in the Blagojevich case said information provided by Rezko and others who testified at Rezko's trial could form the backbone of several additional charges against the governor. Blagojevich's wife, Patricia, had worked on real estate deals with Rezko.

The Post downplays the implications for Barack Obama, as does Fitzgerald, but we shall see. Blago hasn't even begun to talk yet, and we know there is no love lost between the two lately. Not to mention Patti. Real estate, yeah.

UPDATE: Geraghty, NRO, "Why is the FBI asking about Obama's Home Purchase?"

UPDATE: Trib story on Rezko talking.

Rezko Verdict-GUILTY

Pending--announcement of Rezko verdict at 3:45

UPDATE: Guilty on some counts--

FOXNEWS: 6 counts guilty of federal mail fraud out of 24, verdict still being read

UPDATE: Correction, guilty on 16 counts

UPDATE: Video, ABC7

Here's a YouTube that came out yesterday (HT Marathon Pundit), just prior to the verdict. Surely there will be more to come. (And Rezko may have a few more things to confess to cut back his presumed jailtime.):
UPDATE: Tribune:

Rezko's guilty verdict on 16 of 24 corruption counts could have broad repercussions for Blagojevich, who made Rezko a central player in his cabinet. It could also prove a political liability for U.S. Sen. Barack Obama, who once counted Rezko as a friend and fundraiser, as the likely Democratic presidential nominee heads into the general election campaign against Republican John McCain.

The 10-woman, two-man jury deliberated for parts of 13 days before convicting Rezko of scheming with Stuart Levine, a longtime Republican insider, to extort millions of dollars from firms seeking state business or regulatory approval.

The jury convicted Rezko of wire and mail fraud, money laundering and aiding and abetting bribery. He was acquitted of attempted extortion.

UPDATE: Conservative Brand post--Kombine needs Obama, Kass from this morning, if you missed it, more Tribune: Rezko's guilty, who's next (Blago), Indictment summary, plus graphic of the Obama-Rezko connection (multimedia link off updated story)

Related posts: Sensitive Dick Durbin, The Rezko-Obama Roll, Chicago Way Honored, Obama's Chicago Communist Mentor, Open for Bizness, Obama, Khalidi, Rezko, No One Stopped Levine, Obama Nuance, Wright Wrong Again (Ayers Stomps on Flag), Rezko in the Know, Michelle's Friend Kelly, Northwestern Repudiates Wright, More Rezko Connections, Michelle Disses Illinois, We don't buy it, Barack, Vote Fraud & the Chicago Machine, Obama Fuzzy on Rezko-Auchi, The Obama Health Care Plan, Obama Calls Bloggers Liars, More FOBs, Called to Christ, Distracted Democrats, 2007 Dohrn "Overthrow" Video, Taking Stock of Barack: A primer on his radical friends, Whiner Ayers, Barack Obama Turned his Back, Do You Like Waffles?, Ayers-Dohrn SDS Reunion Tapes, Shakeout at Rezko Trial, Governor Bought, Obama Gives Back