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The Return Of Rezko

 

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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 nearly the 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. The Obama campaign says that Obama's offer of $1.3 million was the highest bid on the home. Rezko, who has faced legal troubles ever since the issue arose, has never addressed the matter.

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.

"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," Obama told the Chicago Sun-Times when he was first questioned about the purchase in November 2006. "For that reason, I consider this a mistake on my part, and I regret it."

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. His sentencing, at first scheduled for Oct. 28, was recently postponed to give his lawyers time to work out a cooperation agreement with federal prosecutors in their ongoing corruption probe, which is primarily focused on Democratic Illinois Gov. Rod Blagojevich. Blagojevich has not been charged and has denied any wrongdoing.

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. There is nothing in the lawsuit that indicates why federal prosecutors subpoenaed the records. But the subpoena was issued at a time when they were intensely examining all of Rezko's business dealings. A spokesman for the U.S. attorney's office declined comment. LaBolt, the Obama spokesman, told NEWSWEEK that Obama has never been contacted by Fitzgerald's prosecutors.

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, personally approved the loan to Rezko's wife and had an "established relationship" with Rezko, according to the lawsuit.

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. This week, in an effort to dispute the suggestion that Rezko overpaid for the vacant lot, the Obama campaign solicited an e-mail from the seller in which he confirmed that there was an earlier offer for the same amount of $625,000 for the property.

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Member Comments

  • Posted By: kellyjean @ 11/08/2008 2:20:05 PM

    No such thing as a mole, not according to those that have an understanding of the role. All parties involved know that there must be a certain level of integrity for the job to be performed optimally. All parties involved agree and support this issue and know when and where to ???step outside??? but stay within the boundaries set; but it takes an ???insider???s view??? to know this. The ones that truly ???abuse??? all parties agree that corrective action needs to be taken; the opposite is in place to ensure that the corrective action is reasonable and merited for the infraction.

    Your statement shows how you have little, or correctly stated ???NO??? understating of the how to, know why, the reason for, purpose of, and the means with getting the job done that one needs to have in this vocation. I personally stepped up to the plate and made the sacrifice and seized the opportunity that most people would not even consider by giving up and spending a year of my life to know and understand the how to, know why, the reasons for, purposes of, and the means with getting the job done, that will serve as a benefit to someone who will need that level and type of understanding to help them in life. The understanding and knowledge level will serve as an aid to their benefit at the right time in there???re life.

    You however, have done nothing but whine, cry and bitch, complain, spew hatred, acted revengeful, and committed acts that are in complete contradiction to the integrity that these people stand and live by. What I did ???TRUMPS??? ALL YOU COULD EVER DO OR THINK TO DO, SO TOP THAT BI*CH!

  • Posted By: Nowforsomemoretruth @ 11/03/2008 11:00:36 PM

    The problem with Obama is a simple one. One association does not a radical make. But in Obama's case, the list of left-wing radical mentors and associates is seemingly endless, (Davis, Ayers, Wright, Khalidi , etc., etc.) with a new revelation practically every day. With that trend, a picture begins to emerge, and that picture is that Obama is as steeped, not in just left-wing political thought, but in radical left-wing economic and race ideology, to the same extent that Pat Robertson was steeped in the ideology of the radical Religious Right. I would not have voted for Pat Robertson for dog catcher, and for similar reasons, I will not vote for Obama.

  • Posted By: Nowforsomemoretruth @ 11/03/2008 10:25:21 PM

    In the exchange with "Joe the plumber" Obama unintentionally revealed that he really is as radical as his early political mentors and acquaintances, Davis, Ayers, Wright, Khalidi etc., (gee, there sure seem to be a lot of them) and that he is into the failed economic policy of wealth redistribution. Now there is absolute proof. In 2001, Obama, the "community organizer" turned legislator, said in an interview:

    "And I think one of the tragedies of the civil rights movement was that the civil rights movement became so court-focused, I think there was a tendency to lose track of the political and organizing activities on the ground that are able to bring about the coalitions of power through which you bring about redistributive change, and in some ways we still suffer from that,"

    http://www.youtube.com/watch?v=iivL4c_3pck

    2001 Chicago Public Radio Interview.

    Obama's tax and spending plans alone would be bad enough, but add Reid and Pelosi to the mix, with the three of them controlling both houses of Congress and the executive branch without any effective restraint, and you have something that should causes concern even among moderate Democrats.
    See Wall Street Journal: A Liberal Supermajority:

    http://online.wsj.com/article/SB122420205889842989.html

    Indeed, some democrats are publically saying as much. See Barney Franks comments on the news, including face the nation last week, stating essentially that Democrats in Congress intend to greatly raise taxes and go on a spending spree.

    http://www.youtube.com/watch?v=u1Mazjm_A5k

    http://www.youtube.com/watch?v=cJGnSAlqjoU

    See http://www.taxfoundation.org/blog/show/23617.html

    Obama's ill-conceived programs will require him to tax, and his health care plan alone is a substantial hidden tax on all business, large an small. In reality, it does not really matter who he taxes, those taxes are going to be passed through the economy. He has to tax, because it is they only way he can pay for his massive social engineering experiments. Any first year economics student knows that taxation is a tool used to contract an economy experiencing inflation, because it reduces demand by reducing the amount of money individuals and businesses have to spend. It is contractionary, which is exactly what you do not want to do when the problem is that the economy is contracting already into recession. Like Hoover and FDR, Obama's plans will only make it worse for longer.

    See e.g. http://www.cbsnews.com/stories/2008/10/03/opinion/main4499465.shtml
    And
    http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx


    The democrats failed social engineering policies in the housing market are what brought us to ruin. http://www.youtube.com/watch?v=Lr1M1T2Y314&feature=related
    Even Bill Clinton says so. http://www.youtube.com/watch?v=XsynspIqAoE
    Obama and a supermajority of Democrats simply is not the change we need, nor is it change we can afford.

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