LA Times: Obama Rezko ties deeper than he has admitted...

Longtime patron may be a problem for Obama

Alleged slumlord and indicted businessman Antoin 'Tony' Rezko has long supported the Democratic presidential hopeful, who has returned related donations.

CHICAGO -- Hillary Rodham Clinton dropped the name of Barack Obama's Chicago patron into the South Carolina debate Monday night, putting front and center a tangled relationship that has the potential to undermine Obama's image as a candidate whose ethical standards are distinctly higher than those of his main opponent.

Antoin "Tony" Rezko, an entrepreneur who made a fortune in pizza parlors, Chinese restaurants and real estate, goes on trial next month on federal charges of extortion, influence peddling and conspiracy. There is no suggestion that Obama is involved in any of the alleged criminal activity. But the upcoming trial -- and details of Obama's relationship with its central figure -- could cast a shadow over his carefully cultivated image at a critical time.

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A review by the Los Angeles Times shows that Rezko, a businessman long active in Chicago politics, played a deeper role in Obama's political and financial biography than the candidate has acknowledged.

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For example, Rezko, his employees and business associates -- such as his consultants, lawyers and their families -- have provided Obama more than $200,000 in donations since 1995, helping fuel his rapid ascent in Illinois and U.S. politics. Although Rezko is not Obama's largest bundler, he was there at the start and at critical moments along the way, helping support the candidate when few others were.

In addition to being a campaign benefactor, Rezko also surfaced when Obama and his wife purchased their house on Chicago's South Side in 2005. On the day the Obamas bought their house, Rezko's wife, Rita, bought an adjacent lot from the same sellers, part of which Obama later bought back.

Rita Rezko's purchase, at the $625,000 asking price, came just as the Obamas successfully bid in a slow market to buy the house for $300,000 below the asking price, according to the Chicago Tribune.

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But a government watchdog group that once lauded Obama for leadership on ethics says the Illinois senator should have known better.

"Everybody in this town knew that Tony Rezko was headed for trouble," said Jay Stewart of the Better Government Assn. in Chicago. "When he got indicted, there wasn't a single insider who was surprised. It was viewed as a long time coming. . . . Why would you be having anything to do with Tony Rezko, particularly if you're planning to run for president?"

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Obama has said repeatedly that he did nothing in exchange for Rezko's early and consistent support.

But in 1998, then-state Sen. Obama wrote to state and city officials urging them to provide funding for New Kenwood LLC, a company formed by Rezko and Allison Davis. Obama wrote the letters, first reported by the Chicago Sun-Times, on Illinois Senate stationery, saying: "This project will provide much needed housing for 4th Ward citizens."

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