CHICAGO, June 4, 2008

Obama Fundraiser Found Guilty Of Fraud

Tony Rezko Convicted Of 16 Of 24 Counts In Corruption Case

  • An April 18, 2008, file photo shows indicted political fundraiser Antoin Photo

    An April 18, 2008, file photo shows indicted political fundraiser Antoin "Tony" Rezko leaving the federal building in Chicago.  (AP)

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(AP)  A prominent fundraiser for Sen. Barack Obama and Gov. Rod Blagojevich was convicted of federal fraud, money laundering and bribery charges Wednesday following a trial that exposed a corrupt culture of payoffs and campaign finance abuses plaguing Illinois politics.

Antoin "Tony" Rezko, 52, who according to witnesses wielded wide powers within the Blagojevich administration and now faces a stiff prison sentence, was immediately taken into custody following the verdict.

U.S. Attorney Patrick J. Fitzgerald told reporters the verdict represented "an antidote to the poison of corruption" that trial testimony alleged included the fixing of state boards that controlled a $40 billion pension fund and made major decisions about hospital construction.

The nine-week trial included explosive testimony about all-night drug parties involving the government's star witness and allegations that Blagojevich personally discussed a state job for a donor.

Political corruption in Illinois has been deemed so extensive that the FBI has sent an extra official corruption squad into the state. Federal officials say the investigation is far from over.

"If morals don't get to them, I hope the fear of going to jail does," Fitzgerald told reporters.

Rezko's conviction also intensifies the spotlight on his relationship with Obama, whom Rezko has known since he entered politics, raised money for his Illinois campaigns and was involved in a 2005 real estate deal with him. Obama has donated $150,000 in Rezko-related contributions to charity.

The presumptive Democratic presidential nominee is accused of no wrongdoing and his name was barely mentioned at trial, but Republicans are unlikely to let voters forget about his ties to Rezko as the presidential race heats up.

Obama issued a statement saying he was "saddened," adding, "This isn't the Tony Rezko I knew, but now he has been convicted by a jury on multiple charges that once again shine a spotlight on the need for reform."

Blagojevich also was not accused of wrongdoing but his reputation received a serious battering by the testimony that emerged. The state legislature has been discussing impeachment and a wide open Democratic primary in 2010 is likely.

One witness said the governor discussed a state payroll job for a campaign contributor with a $25,000 donation lying on the table. Another said Blagojevich spoke of big-money state contracts for those who helped him advance his political career — possibly as a presidential candidate.

A money management executive who wanted to invest state pension assets said he was told to sign a contract promising to pay a $800,000 fee to a consultant he had never heard of based in the Turks & Caicos Islands.

"That's the way the governor handles patronage here," he quoted a Chicago attorney who pressed him to sign the contract as saying.

Blagojevich has repeatedly denied taking part in any of the shadowy political dealings that were described from the witness stand. On Wednesday, he read a prepared statement to reporters in which he called Rezko "a friend" who "was a supporter."

"On a personal level I am deeply sad for what's happened to Tony," Blagojevich said. "The jury's decision is yet another reminder that ours is a system of government that is ruled by laws and not by men. I respect the decision of the jury."

Rezko, a Chicago real estate developer and fast-food entrepreneur, was convicted of six counts of mail fraud, six counts of wire fraud two counts of aiding and abetting bribery and two counts of money laundering.

The jury acquitted him of three counts of wire fraud, four counts of aiding and abetting bribery and one count of attempted extortion.

His conviction was a stunning victory for federal prosecutors who accused him of plotting with admitted political fixer Stuart Levine to squeeze payoffs out of money management firms that sought to invest the assets of the $40 billion state Teachers Retirement System.

Rezko also was charged in the 24-count indictment with plotting with Levine to get a $1.5 million bribe from a contractor who sought state approval to build a hospital in the McHenry County suburb of Crystal Lake.

Levine pleaded guilty to the charges and became the government's star witness in hopes of getting a relatively lenient 5½-year sentence.

Fitzgerald declined to estimate what sentence Rezko might get. U.S. District Judge Amy J. St. Eve set Rezko's sentencing for Sept. 3.

Clad in a sharply tailored tan suit, Rezko showed no emotion as St. Eve read the verdict. He smiled slightly at well wishers and waved as U.S. Marshal Kim Widup and a crew of deputies escorted him to the lockup.

Rezko, who has dual U.S. and Syrian nationality, had been free on $8 million bond pending the trial's conclusion.

"Mr. Rezko, on his own, decided that if he was convicted he wanted to immediately start serving his sentence," said defense attorney Joseph Duffy, who added that he would pursue an appeal.

Levine was a bizarre witness by any yardstick. He freely admitted to years of attending marathon drug parties in a suburban hotel with male companions and taking large doses of cocaine, crystal methamphetamine, kaetamine, and other drugs, frequently washed down with shots of vodka.

Jurors who met briefly with reporters following the verdict said that they realized Levine was not the most reliable witness.

"He played with us in the courtroom also," said Andrea Coleman. But another juror, Mona Lisa Mauricette, said his testimony seemed to fit in with tapes of phone conversations made secretly by the FBI.

"We weren't going only on Levine's testimony," Mauricette said.

The jurors laughed and declined to comment when one reporter asked if they had realized how corrupt Illinois politics can be before the trial. They also said Blagojevich's role in the case had no influence on them.

© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Add a Comment See all 44 Comments
by tawpdawg11 June 4, 2008 6:15 PM PDT
Yawwwwwwwwwwwwwwwwwwwwnnnnnnnnnnnnnnnnnnnnn! What''s for supper?
Reply to this comment
by tiredofobama June 4, 2008 6:16 PM PDT
Rezko has known Obama since he entered politics and was involved in a 2005 real estate deal with the Democratic presidential candidate, although testimony barely touched on their relationship. Most of the focus was on shakedowns prosecutors say Rezko arranged when he was a top adviser to Blagojevich.

Neither Blagojevich nor Obama has been accused of wrongdoing.

Kind of an oxymoronish statement there...this crook raised $214 million for Obama''s campaigns...you lie in bed with crooks, you are a crook!
Reply to this comment
by jrysk June 4, 2008 6:17 PM PDT
Now that Rezko has been convicted, both Obama and Blagojevich will VERY SOON be indicted under 18 USC 1346, which is the section under which Rezko was found guilty.

Evelyn Pringle has just completed her series on Obama at opednews.com. You should review the articles, and then review the discussion of 18 USC 1346 provided, in order to see for what activities Obama will be indicted:

http://www.groom.com/_library/downloads/NAPPAArticle-Feb2006.pdf.

Reply to this comment
by wooleywews June 4, 2008 6:18 PM PDT
The convention can still correct the error!! Go Hillary!
Reply to this comment
by tawpdawg11 June 4, 2008 6:18 PM PDT
is there six degrees of separation from rezko to kevin bacon?
Reply to this comment
by tiredofobama June 4, 2008 6:18 PM PDT
Strange isn''t it. Obama''s chief campaign supporter gets indicted for fraud! This gets 150 puny words, no details at all, and barely a mention!

Jesus Christ! CBS and Obama must really think we''re stupid.
Reply to this comment
by wooleywews June 4, 2008 6:23 PM PDT
Yawwwwwwwwwwwwwwwwwwwwnnnnnnnnnnnnnnnnnn
nnn! What''''s for supper?
Obama medium rare! Put a fork in him.
Reply to this comment
by wooleywews June 4, 2008 6:28 PM PDT
is there six degrees of separation from rezko to kevin bacon?

No but there is only one degree from Obama! Go Hillary
Reply to this comment
by a_negroeman June 4, 2008 6:38 PM PDT
The Wright way to have Damnation with Obamanation!
Hello, my name is Barack Hussein Obama and I will be running for president!
I and my wife and my children, have learned 20 years of hate speech of whites keeping us blacks down,

We will change America! I promise you this America. You will get change!
Do you hear me you will get change!
Listen to me loud and clear YOU WILL GET CHANGED.

My wife is a racist,Check out her thesis she wrote to graduate College!
My children are racist, just asks anyone in my church if the my children herd everything and clapped to everything like everyone else did at my church.
I am not a racist, I am not a racist, I am not a racist, I am not a racist! I running to win
Reply to this comment
by pesojoe June 4, 2008 6:41 PM PDT
Just a nibble on BHOs corruption pie. First everyone was blind to Bush lies and his love of oil and revenge. Result all his friends are very thankful and richer and owe him after he is finished soiling America for his own reasons not Americas good. BHO and his wife in their sheep skins prove the old adage, There is a sucker born every minute! The mounds of trash on BHO doorstep are to high to overlook. John would never be my choice until now when his only opponent is a muslim with a fake cross.
Reply to this comment
by a_negroeman June 4, 2008 6:46 PM PDT
Posted by pesojoe at 06:41 PM : Jun 04, 2008

There are 50 Muslims in Iraq to every 1 American posting here in America. They report you if you say something of value!
Reply to this comment
by wooleywews June 4, 2008 6:48 PM PDT
There is still time to correct this. Go Hillary
Reply to this comment
by divitius June 4, 2008 6:49 PM PDT
Yawn. Norman Hsu anyone? This is peanuts compared to that.
Reply to this comment
by kailumego1 June 4, 2008 6:50 PM PDT
What a shame
Reply to this comment
by ofbyfor1 June 4, 2008 6:59 PM PDT
you lie in bed with crooks, you are a crook!

Posted by TiredofObama at 06:16 PM : Jun 04, 2008

Please, guilt by association is soooo un-American.. Let''s dredge up every detail of the lives of anyone you''ve known for the past few decades and see what sticks, shall we? Would you like to be held accountable for what OTHER people do? I thought not.
Reply to this comment
by tiredofobama June 4, 2008 7:03 PM PDT
Please, guilt by association is soooo un-American.. Let''''s dredge up every detail of the lives of anyone you''''ve known for the past few decades and see what sticks, shall we? Would you like to be held accountable for what OTHER people do? I thought not.


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Posted by ofbyfor1 at 06:59 PM : Jun 04, 2008

Absolutely guilt by association and complicity! That''s YOUR guy!
Reply to this comment
by tiredofobama June 4, 2008 7:05 PM PDT
Hillary stay AWAY from Obama! You don''t need his dirt!

The republicans are about to take him DOWN!

Stay away!
Reply to this comment
by ofbyfor1 June 4, 2008 7:07 PM PDT
Absolutely guilt by association and complicity! That''''s YOUR guy!

Posted by TiredofObama at 07:03 PM : Jun 04, 2008

Just because you say he''s guilty doesn''t make it so. Sorry, Troll.
Reply to this comment
by tiredofobama June 4, 2008 7:16 PM PDT
Just because you say he''''s guilty doesn''''t make it so. Sorry, Troll.


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Posted by ofbyfor1 at 07:07 PM : Jun 04, 2008

Just because you say it isn''t so...dosn''t make Obama''s CHIEF FUNDRAISER not a convicted FELON!

Reply to this comment
by tiredofobama June 4, 2008 7:17 PM PDT
Just a nibble on BHOs corruption pie. First everyone was blind to Bush lies and his love of oil and revenge. Result all his friends are very thankful and richer and owe him after he is finished soiling America for his own reasons not Americas good. BHO and his wife in their sheep skins prove the old adage, There is a sucker born every minute! The mounds of trash on BHO doorstep are to high to overlook. John would never be my choice until now when his only opponent is a muslim with a fake cross.


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Posted by pesojoe at 06:41 PM : Jun 04, 2008

Right on!
Reply to this comment
by erichsh June 4, 2008 7:47 PM PDT
Only by searching for "Rezko" did I find this buried on CBS, with only 20 comments. Now if Rezko supported McCain, it would be splashed across the main page with 2,000 nasty comments. CBS: In the tank for Obama.
Reply to this comment
by sgtrds-e4 June 4, 2008 9:16 PM PDT
Yawn..........
Reply to this comment
by joan1v June 4, 2008 9:18 PM PDT

How many more questionable relationships does Obama have to have before people understand this man is no different than any other politican. He is just a smooth talker with no experience.
Reply to this comment
by jack3213 June 5, 2008 7:18 AM PDT
This is just the beginning of the wrong doings behind the Obama campaign. In the next 5 months so much will come out that proves Obama is the wrong man- in so many ways- your head will spin. Lol.
Reply to this comment
by abbe91 June 5, 2008 7:34 AM PDT
"Obama Fundraiser Found Guilty Of Fraud"

Is this CBS or Fox ? The title might have been
"Bush Fundraiser Found Guilty Of Fraud" as well.
Reply to this comment
by tiredofobama June 5, 2008 8:51 AM PDT
And you can bet Obama was in it up to his eyeballs!

$214 Million worth...
Reply to this comment
by minnick8-2009 June 5, 2008 11:12 AM PDT
Obama issued a statement saying he was "saddened," adding, "This isn''t the Tony Rezko I knew."
From article above

What a crock. BO didn''t know the real Rezko, he didn''t know about the Reverend''s philosophies after 20 years? For someone who is supposed to be so smart, able to work miracles, sit down with terrorists and create peace out of talk, it seems to me as if there is a lot he wasn''t aware of. It is scary to think of the possibilities of other things about which he may have had the wool pulled over his eyes. He is either a liar or really dumb. Either way, I don''t want him for President.

OB looks like he is on his way to becoming President--God help us.
Reply to this comment
by omaar-101 June 5, 2008 11:26 AM PDT
Fraud Lawsuit

Targets Hillary
Fund-Raiser Cclaims ''Smoking Guns''

Prove Campaign in Massive Scam !!



By Art Moore
2008 WorldNetDaily.com


Peter Paul and Sen. Hillary Clinton

(photo: hillcap.org)

As Hillary Clinton positions herself for a presidential run, a former fund-raiser is moving ahead with a lawsuit claiming the New York senator orchestrated the largest campaign-finance fraud ever by an American political campaign.

In an interview with WorldNetDaily, Los Angeles millionaire lawyer and businessman Peter Franklin Paul asserted Clinton failed to declare to the Federal Election Commission more than $2 million in contributions %u2013 a massive omission he believes prevented her 2000 senatorial campaign from going bankrupt in the crucial final weeks.

Paul has filed a civil suit charging Sen. Clinton and her husband, former President Clinton, with fraud, coercion and conspiracy. California courts so far have denied the Clintons'' motions to dismiss, and Paul expects the case to proceed at the beginning of the year, just as Hillary Clinton prepares to defend her Senate seat.

"This public servant, who is sworn to uphold the Constitution, is the biggest violator of the fundamental principles and statutes relating to fair elections and honest government," Paul told WND. "She needs to be dealt with in a way that will show this country and elected officials in Washington that everybody is accountable to the rule of law."
Reply to this comment
by omaar-101 June 5, 2008 11:28 AM PDT
http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=45885

Fraud lawsuit
targets Hillary
Fund-raiser claims ''smoking guns''


Paul has filed a civil suit charging Sen. Clinton and her husband, former President Clinton, with fraud, coercion and conspiracy.

California courts so far have denied the Clintons'' motions to dismiss, and Paul expects the case to proceed at the beginning of the year, just as Hillary Clinton prepares to defend her Senate seat.

"This public servant, who is sworn to uphold the Constitution, is the biggest violator of the fundamental principles and statutes relating to fair elections and honest government," Paul told WND. "She needs to be dealt with in a way that will show this country and elected officials in Washington that everybody is accountable to the rule of law."


Paul, who co-founded the Stan Lee Media company with the Marvel Comics creator, said several of his key allegations were corroborated during the recent trial of David Rosen, the former national finance director of Sen. Clinton''s 2000 Senate campaign.

Rosen was acquitted of making false statements to the federal government, but the trial established that Paul contributed more than $1.2 million of his personal funds to Clinton''s campaign in an attempt to persuade President Clinton to become a spokesman for his businesses when he left office.

"No one denied major fraud had been committed; they just didn''t think Rosen could be culpable alone," Paul said.
Reply to this comment
by pensacola88 June 5, 2008 11:32 AM PDT
The Illinois political campaign problems are found all over the country. Just last year, Texas politican Tom DeLay was in hot water for the same type ethics and had affiliations with Terri Schiavo and Jack Abramoff.

Everyone serving a powerful elected position knows that new faces don''t show up in the House or Senate Chambers without a successful trip through the financial fog. There is a lot of dirty money and dirty hands there just like everywhere else. Most candidates weren''t voted in by their constiuents to clean up a mess. When a candidate spends too much time thinking about money, they loose their focus on legislation that runs the country.

Power always attracts money. Money always attracts corruption. A person without experience handling money or power wont last long in Washington or any state capital.
Reply to this comment
by omaar-101 June 5, 2008 11:47 AM PDT
The Illinois political campaign problems are found all over the country. Just last year, Texas politican Tom DeLay was in hot water for the same type ethics and had affiliations with Terri Schiavo and Jack Abramoff.

Everyone serving a powerful elected position knows that new faces don''''t show up in the House or Senate Chambers without a successful trip through the financial fog. There is a lot of dirty money and dirty hands there just like everywhere else. Most candidates weren''''t voted in by their constiuents to clean up a mess. When a candidate spends too much time thinking about money, they loose their focus on legislation that runs the country.

Power always attracts money. Money always attracts corruption. A person without experience handling money or power wont last long in Washington or any state capital.


Posted by Pensacola88

I Agree with you 100%

This is a Capitalist Society...live with it.
Reply to this comment
by croft777 June 5, 2008 11:51 AM PDT
remember that Obama knew that tony was being investigated hwen he took that money for his campaine. Obama knew. I think Obama is just as guilty as Tony.
Reply to this comment
by croft777 June 5, 2008 11:52 AM PDT
Remember that Obama knew that Tony was being investigated when he took that money for his campaign. Obama knew. I think Obama is just as guilty as Tony.
Reply to this comment
by croft777 June 5, 2008 11:52 AM PDT
Remember that Obama knew that Tony was being investigated when he took that money for his campaign. Obama knew. I think Obama is just as guilty as Tony.
Reply to this comment
by omaar-101 June 5, 2008 11:59 AM PDT
Remember that Obama knew that Tony was being investigated when he took that money for his campaign. Obama knew. I think Obama is just as guilty as Tony.

Was Obama on Trial...NOOOOO

Was Rezko a Donator to his Candidacy...YESSSS


Did Obama Donate Rezko`s Money to Charity and halted any more Donations form Rezko....YESSSS

John McCain has a Laudry List Of Lobbyist on his Campaign and he`s getting Rid of them on a Weekly Basis..Now.



--------------------------------------------------------------------------------

Posted by croft777
Reply to this comment
by omaar-101 June 5, 2008 12:02 PM PDT
Remember that Obama knew that Tony was being investigated when he took that money for his campaign. Obama knew. I think Obama is just as guilty as Tony.

Posted by croft777

--------------------------------
----------------------------------------
--------

Was Barack Obama on Trial...NOOOO

Was Obama ever Indicted ...NOOOO

Was Rezko a Donator to his Candidacy...YESSSS


Did Obama (Donate Rezko`s Money to Charity) and Halted any more Donations form Rezko....YESSSS

John McCain has a Laudry List Of Lobbyist on his Campaign and he`s getting Rid of them on a Weekly Basis..Now.






Reply to this comment
by tiredofobama June 5, 2008 2:00 PM PDT
You can bet Obama was in it with Rezko up to his eyeballs! These Chicago politicians and their board games are the most toxic politicians in the US.
Reply to this comment
by taddles2 June 5, 2008 2:57 PM PDT
"Just last year, Texas politican Tom DeLay was in hot water for the same type ethics and had affiliations with Terri Schiavo and Jack Abramoff.


Posted by Pensacola88 at 11:32 AM : Jun 05, 2008"



Affiliations with Terry Schiavo? A little hard since she was in a vegetative state and had been for 15 years.
Reply to this comment
by taddles2 June 5, 2008 3:00 PM PDT
"Obama knew. I think Obama is just as guilty as Tony.

Posted by croft777 at 11:52 AM : Jun 05, 2008"


Interesting since Fitzgerald unvestigated everyone who had any associations with Rezko for any involvement at all and Obama''s name never came up. You must think that Fitzgerald is incompetent since he didn''t find anything that connected Obama to Rezko in any way.
Reply to this comment
by omaar-101 June 5, 2008 3:52 PM PDT
http://www.worldnetdaily.com/news/articl
e.asp?ARTICLE_ID=45885

Fraud lawsuit
targets Hillary
Fund-raiser claims ''smoking guns''''


Paul has filed a civil suit charging Sen. Clinton and her husband, former President Clinton, with fraud, coercion and conspiracy.

California courts so far have denied the Clintons'''' motions to dismiss, and Paul expects the case to proceed at the beginning of the year, just as Hillary Clinton prepares to defend her Senate seat.

"This public servant, who is sworn to uphold the Constitution, is the biggest violator of the fundamental principles and statutes relating to fair elections and honest government," Paul told WND. "She needs to be dealt with in a way that will show this country and elected officials in Washington that everybody is accountable to the rule of law."


Paul, who co-founded the Stan Lee Media company with the Marvel Comics creator, said several of his key allegations were corroborated during the recent trial of David Rosen, the former national finance director of Sen. Clinton''s 2000 Senate campaign.

Rosen was acquitted of making false statements to the federal government, but the trial established that Paul contributed more than $1.2 million of his personal funds to Clinton''s campaign in an attempt to persuade President Clinton to become a spokesman for his businesses when he left office.

"No one denied major fraud had been committed; they just didn''t think Rosen could be culpable alone," Paul said.



Reply to this comment
by omaar-101 June 5, 2008 3:53 PM PDT


Fraud Lawsuit

Targets Hillary
Fund-Raiser Claims ''Smoking Guns''

Prove Campaign in Massive Scam !!



By Art Moore
2008 WorldNetDaily.com


Peter Paul and Sen. Hillary Clinton

(photo: hillcap.org)

As Hillary Clinton positions herself for a presidential run, a former fund-raiser is moving ahead with a lawsuit claiming the New York senator orchestrated the largest campaign-finance fraud ever by an American political campaign.

In an interview with WorldNetDaily, Los Angeles millionaire lawyer and businessman Peter Franklin Paul asserted Clinton failed to declare to the Federal Election Commission more than $2 million in contributions %u2013 a massive omission he believes prevented her 2000 senatorial campaign from going bankrupt in the crucial final weeks.

Paul has filed a civil suit charging Sen. Clinton and her husband, former President Clinton, with fraud, coercion and conspiracy. California courts so far have denied the Clintons'' motions to dismiss, and Paul expects the case to proceed at the beginning of the year, just as Hillary Clinton prepares to defend her Senate seat.

"This public servant, who is sworn to uphold the Constitution, is the biggest violator of the fundamental principles and statutes relating to fair elections and honest government," Paul told WND. "She needs to be dealt with in a way that will show this country and elected officials in Washington that everybody is accountable to the rule of law."

Reply to this comment
by Lai K W June 5, 2008 6:36 PM PDT
The Hypocrisy of Obama is condoned because of political laundry in the undemocratic Democratic Party.

The principle of democracy has been torn to pieces as reflected from the party pundits. They have been making new rules for nomination. They keep on swaying votes for Obama. They rig up the elections. They insult and dismiss voters. They put their party above people. This is the cardinal sin that we should make them pay in Nov.

Nobody can stick an unqualified candidate to the voters. We shall ensure the undemocratic processes shall be repaid with a landslide loss so that the black community would be taught a lesson that it is the quality of their candidate which is the problem.
Don''t flash the race card to us. America does not owe them anything in this generation.

This generation is not going to accept this inequality. You can take this *** to hell.
Reply to this comment
by omaar-101 June 6, 2008 1:39 AM PDT
Hillary: Bill, I`m going out for a Midnight Stroll.

Bill: You want me, to come along, Hill ?

Hillary: No, Bill, You rest your Wearing Head, its been a long Campaign and I need to sort through, some things.

Bill: Alright, Night, Night, Sugar Pants.

Hillary: Saying to herself.. The Old Grey Goose, is getting more Gullible in his Old Age...

He!!, I''m going to get some of that (Hot Obama Lovin) !!!

Bill: After the Coast is Clear...hits his Cellie...

Thank God, I got Michelle on Speed Dial, Man Oh Man, is Hillary getting Slow, in her old Age !!!

Once upon a time, she''d catch Me right Dead in the Middle of it, now its just a *** Cake Walk.

Hillary: Thank God, I got Barack in My Fave 5 !!!
Reply to this comment
by joan1v June 6, 2008 11:26 AM PDT
I am from Illinois and Chicago politics is not a joke.
Please don''t vote for anyone from this state, they have made a mess here. We have had three governors in jail and a fourth on the way. DON''T VOTE FOR OBAMA, HE IS ANOTHER ONE OF THEM. He and his corrupt connections will destroy us.
Reply to this comment
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