Did Rezko find sinecures for Obama staffers? Update: A primer on the Chicago Way
posted at 1:25 pm on March 6, 2008 by Ed Morrissey
Tony Rezko’s trial has hardly begun, and already Barack Obama has more questions to answer. Rezko faces multiple charges of corruption in federal court, in part regarding his influence in getting jobs for cronies in city and state jobs. Now it looks like a few of those jobs went to Obama staffers, including one currently on the presidential campaign:
Did Barack Obama use indicted campaign fund-raiser Tony Rezko as a conduit to get jobs for people in Gov. Blagojevich’s administration?
The question arises from a list of 39 people Rezko’s lawyers said in a court filing he urged Blagojevich to give state jobs. …
Among those on the list were two people who appear to have Obama links and a third who’s now an Obama presidential campaign staffer.
But did the names come from Obama? His campaign staff’s short answer: Don’t know — but it’s possible.
Hardly a ringing denial. The Obama team must have learned something from the NAFTA Dance — don’t make categorical denials that can blow up in your face later. Instead, they probably hope to disarm this through a mix of downplaying and admissions.
Wait until the testimony begins and the rest of the Rezko machinations come to light. This could get ugly very quickly for Obama.
UPDATE: Or perhaps not. Read Rick Moran’s primer on the Chicago Way based on a John Kass column in today’s Chicago Tribune:
You know the movie “The Untouchables” in which Connery played the only Chicago cop in city history with a Scottish accent? “He [ Al Capone] puts one of yours in the hospital, you put one of his in the morgue…” says Connery’s cop. “That’s the Chicago Way.”
Perhaps.
Chicago’s mob — we call it the Outfit — was slapped last summer by federal prosecutors in the Operation Family Secrets trial that convicted Outfit bosses, and cops and put political figures in with them. We’ve had our chief of detectives sent to prison for running the Outfit’s jewelry-heist ring. And we’ve had white guys with Outfit connections get $100 million in affirmative action contracts from their drinking buddy, Mayor Richard Daley, who must have seen them pink and white and male at some point.
That’s the Chicago Way.
Rick is, ah, less than optimistic that the national media will figure this out.
UPDATE II: NZ Bear has launched Rezkorama — a great aggregator for all of your Rezko needs!
Blowback
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Is Che Guevara on any list?
OhEssYouCowboys on March 6, 2008 at 1:27 PM
I guess we will see how much teflon Obama is made of…
jimbo2008 on March 6, 2008 at 1:28 PM
Instead, they probably hope to disarm this through a mix of
downplaying andchanging admissions.Califemme on March 6, 2008 at 1:30 PM
All of this, the delegates/state primary shuffles, the Rezko trial. Hillary’s tax returns, all of this is a set up for an election that will not be over on election day. You think 2000 was nuts, you ain’t seen nothing yet.
bbz123 on March 6, 2008 at 1:34 PM
This is getting better by the day. :D
Afterimage on March 6, 2008 at 1:34 PM
Rule No. 1 of Criminal law: Consent to nothing and admit nothing.
Rule No. 2 of Criminal law: See Rule No. 1.
For politicians, silence is golden.
OhEssYouCowboys on March 6, 2008 at 1:34 PM
I can hear Hillary’s evil, bone-chilling cackle from here.
It’s all going to get ugly… his supports aren’t going to accept any amount of evidence to disqualify him. It’ll all be made up just to get him in their eyes.
TheBigOldDog on March 6, 2008 at 1:35 PM
Democrats, Hillary knowns you’ve been cheating on her with that other guy.
All is forgiven. She will take you back with open arms.
No one loves you like she does. She’s sitting by her phone.
Dial her number. You know you want to.
SHE WILL NOT BE IGNORED.
NoDonkey on March 6, 2008 at 1:36 PM
Pardon my apprehension, but why is the Chicago Sun-Times reporting this about their boy?
amerpundit on March 6, 2008 at 1:36 PM
In a perfect world, the Supreme Court will have to decide which Socialist pig will get the nomination.
OhEssYouCowboys on March 6, 2008 at 1:36 PM
Presidential Candidates and their Wives’ Great Speehes:
America is mean.
I was never proud of America, and never will be.
Shove it.
Hussein Barack:
“What I meant by ‘change’ is changing colors.
It is time to make History.
It is time to have a corrupt Black President in the Black House.
Washington D.C. has seen enough Whites.
We want change!! We want change!!”
Indy Conservative on March 6, 2008 at 1:37 PM
Sun-Times on the verge of going under. They need a big story to pull up readership…like now!
Limerick on March 6, 2008 at 1:39 PM
If you lie down with dogs, you wake up with snakes.
(taken from some idiot being interviewed by John Gibson)
bopbottle on March 6, 2008 at 1:40 PM
I just saw on LGF that BHO ‘grandma’ said in April last year in an interview, “I am a strong believer in the Islamic faith’ and she gets up at 5 am to pray. Now she is saying she is a Christian. Little tid bit for BHO to deal with.
L
letget on March 6, 2008 at 1:42 PM
Reminds me of the book Plunkitt of Tammany Hall.
CP on March 6, 2008 at 1:49 PM
Alzheimers is a terrible disease.
James on March 6, 2008 at 1:50 PM
You forgot Rule No. 3: Make counter accusations.
Hollowpoint on March 6, 2008 at 1:51 PM
ruh roh
custer on March 6, 2008 at 1:54 PM
I don’t know how much there is to this. It’s probably just typical political patronage stuff and back scratching. FWIW, There’s more here.
What I do find interesting, and is not in either of these stories, is Rezko sought state post for agent who sold Obama home (He did not succeed).
What I cannot figure out about this real estate transaction is why and how it is that the sellers sold the property as two different lots (when it had originally been one piece) but insisted that as a condition of the sale that they close on the same day. I’m not in the real estate biz, but that sounds irregular to me. How can one possibly put a property on the market, divide it, yet demand that they both close at the same time when the likelihood is that the transaction will involve more than one buyer? Keep in mind that this was an historic home and had to meet Landmark Commission standards – something that further complicates deals like this.
I’d really like to know more about this aspect of this deal. Is this normal?
Buy Danish on March 6, 2008 at 2:07 PM
1 – People in Chicago/Cook County are getting NAILED with taxes. The man responsible for the highest sales tax in the nation, Todd “the Todler” Stroger was in a fight to take over the Cook County presidency when his father stroked out. It was a fight, that is, until Bam Bam endorsed him.
2 – Blagojevich will be the second, consecutive, governor of Illinois to be embroiled in corruption charges and will likely be indicted/convicted. Bam endorsed him, as well.
It goes a lot deeper than that, but the jist is that the people of Chicago and Illinois are getting screwed by the people that Bam gave a thumbs up to.
Who, of course, are the same people that helped Bam get into the State Senate, and into Congress.
The local media are coming down hard on the Democratic machine in Chicago/Illinois, for good reason, and Bam is the stuffed head that everyone wants.
yo on March 6, 2008 at 2:11 PM
Is political pandering an inheritable trait, or has granny been taking lessons from Barack’s NAFTA guy? (I didn’t say what you said I said; or if you have a record that I did say it, then I didn’t mean it).
AZCoyote on March 6, 2008 at 2:42 PM
Speaking of the seller’s broker – Donna Schwan is described as a “thorn in the side of the Obama campaign” in this story from the Independent U.K. with the very melodramatic title, The Chicago street where a dangerous secret from Barack Obama’s past lurks:
A self-described “Hillary Girl”, Ms Schwan, who is trying to sell the plot of land next to the Obama’s, muttered an oath about the secret service. “Just let them try and move me,” she said. “Thank God this is still a free country.” As many voters go into a collective swoon over the charismatic Barack Obama, the candidate promises to help Americans feel good about themselves and their country once again, Ms Schwan is urging a little caution. “I’ve been there,” she says. “It’s like going on a hot date with a cool guy, you just don’t want to ask too many questions and ruin the dream.”
Buy Danish on March 6, 2008 at 2:44 PM
sigh. That’s the second headline by the Cap’n that I had to look up a word…”sinecure”.
I’m learning!
dish on March 6, 2008 at 2:44 PM
Am I given to understand that there exists a possibility that there may perhaps be some corruption in Chicago politics?
rbj on March 6, 2008 at 2:50 PM
Teflon? This stuff will stick to him like napalm if it turns out he is just another Chicago politician on the take.
Slopping the public trugh with dola is the Chicago way.
saiga on March 6, 2008 at 2:52 PM
In reading this Der Speigel article, a small change to Obama;s house-buying narrative appears. It seems that the real estate agent who sold the house to Obama originally wanted to sell the house AND garden as a unit (about $2.6million, not the $1.65million that keeps getting mentioned). Rezko’s wife bought the garden for $625,000, and somehow Obama got a $300,000 discount on the house.
From this version of the story, it looks like Obama is into Rezko for closer to $1million than only $300,000.
In Chicago, just how much influence does an essentially un-payable $1million debt get? How and when is the debt finally paid off?
In reading this TimesOnline article, it seems that Obama’s pal Tony Rezko (the supposedly-broke guy on trial) has received, between April 2005 and the end of 2007, about $21million from Nadhmi Auchi (an Iraqi billionaire).
$20million can get a lot of projects started in many districts, and handle a lot of personal loose ends for superdelegates. Just elect the right guy, the guy with too many obligations.
I have this suspicion that the Rezko trial will cause Obama to crumble. It’s just a matter of asking the right questions to the guy who’s unused to answering tough questions.
Arbalest on March 6, 2008 at 3:50 PM
A must read.
As a prelude to his March 6, 2008, article Yes way. Chicago’s conduct code is a priceless legacy, Chicago Tribune columnist John Kass appeared the night before, March 5, 2008, on CNN with conservative talk show host Glenn Beck. The following comes from the show’s transcript:
KASS: He’s the fellow who helped — he helped buy Barack a house. Barack didn’t have the money to pay full price. Let’s see, he paid — Barack paid, asked him for less than asking price, $300,000 less. Rezko’s family paid the asking price for a house — for a lot next door. They kind of put it together, and Barack still hasn’t been answering questions as to exactly what happened.
BECK: Wait, wait, wait. Wait, wait, wait. So when — when the housing prices were still really good…
KASS: They were high.
BECK: … he paid — he got a $300,000 discount. And Rezko bought the property next door at $300,000 more? Or something like that.
KASS: Yes. Something like that.
http://rezkowatch.blogspot.com/
moxie_neanderthal on March 6, 2008 at 4:05 PM
Absolutely brilliant.
This has the potential to be quite a circus.
“Pointing out that Obama sent a staffer to observe to the opening session of Rezko’s trial, the Clinton camp is considering sending a representative of its own to watch out for Obama dirt during the proceedings.”
Clinton camp keeping an eye on Rezko trial
http://rawstory.com/news/2008/Clinton_camp_keeping_eye_on_Rezko_0304.html
I suspect the FOO (friends of Obama) within the press corps will start reviewing White Water looking for a pot and kettle angle.
“When the begin eating their own, pass the salt”
moxie_neanderthal on March 6, 2008 at 4:18 PM
Arbalest on March 6, 2008 at 3:50 PM
Where are you getting this from?:
This?:
Where does it say that this property was originally intended to be sold as one large piece?
I don’t see anything new here, except the mention of a realtor as if this was her decision to break the property up, and not the sellers’ (or anyone else).
It does seem to me that a key to this lies with the sellers and their realtor, particularly the decision to break the property up into 2 lots with the odd provision that the closing for both properties be the same day.
Buy Danish on March 6, 2008 at 4:49 PM
found this little tidbit at HH which I hadn’t seen before.
this makes the Rezko’s buying of the lot even more misterious, who buys a $625,000 lot with no access?
windansea on March 6, 2008 at 5:10 PM
Buy Danish:
Here (in bold):
“Furthermore, Obama has Rezko to thank for his mansion in south Chicago. In the summer of 2005 Obama had just been elected to the Senate, and wanted to buy the luxury home. It should have cost around $2 million but the realtor wanted to sell it together with an adjacent undeveloped lot, which would have cost another $625,000 — too much for Obama. Then Rezko’s wife got involved. She bought the piece of land at the full price, while Obama got his house for a $300,000 markdown.”
This doesn’t seem spectacularly new, but all previous narratives indicate $1.65 million and then talk about the garden. The linkage is never spelled out this way. That the realtor originally wanted to sell them together ($2.6million) is never mentioned, at least I’ve never seen it mentioned, until the Der Speigel article.
The previous appearance has been that Rezko bought the garden and also (somehow) arranged for Obama to get a $300,000 discount.
Now the appearance is that Rezko arranged with the realtor to buy the lot which, coupled with the $300,000 discount, made Obama’s purchase possible: $1million (due to Rezko), not a $300,000 not-clearly-explained difference. Implicitly, the realtor gets the same amount of money either way.
This links Obama and Rezko much more closely
Arbalest on March 6, 2008 at 5:36 PM
Okay, I gotcha. I think :)
The only thing is that the $2 million number is too high. It was 1.65 million (and he got it for 1.3 which is closer to 1 than 2). Therefore the $2.6 million number doesn’t really work.
I also don’t know that you can say that Rezco got Obama the $300,000 discount.
Buy Danish on March 6, 2008 at 6:06 PM
I watched a few video interviews of John Kass at the link and someone noted that the Republicans there have been silent because more than a few Republicans have enjoyed the Chicago Way.
Nothing would please me more than too see these Rs put through the wringer too. Corruption is corruption and we don’t need or want (hopefully) Rs who are caught up in the Chicago way. Learning to “play” with the Dems in a corrupt government should serve as reason to excommunicate these “Republicans”. We should celebrate the housecleaning.
thegreatbeast on March 6, 2008 at 6:33 PM
Mr. Obama says he never used Mrs.
Where I am from, a lot with no access is worth nothing unless someone gives you an easement. That’s why this lot was originally to be sold with the house. It wasn’t that the lot was worth $625,000 of the original 2.6 mil, the lot was worth nothing. barry got alot more then a $300,000 discount, sounds like he got 1.3 mil from his buddy rezko.
peacenprosperity on March 6, 2008 at 6:39 PM
With no access to the property except through bordering sites, the market for the lot would be comprised of the owners of the lots bordering it. That is a buyers market to the extreme.
peacenprosperity on March 6, 2008 at 6:45 PM
Barack: Rezko? Rezko who?
SouthernGent on March 6, 2008 at 7:07 PM
Buy Danish:
Your numbers of $1.65 million and $1.3 million bring up an interesting question: which source is correct?
Your source suggests that Obama was able to make the purchase mostly on his own. Mine suggests otherwise.
The TimesOnline article reports that in June 2005, Barack Obama buys his mansion for $1.65 million, $300K below the asking price, on the same day Mrs. Rezko buys the adjoining vacant lot for $625K.
The appearance is that the Rezkos made the Obama purchase possible, and to the tune of about $1million: $2.6M asking – $625L (garden) = $2M. $2M – $300k – (points/fees/etc) = about $1.65million. This is about the same number the Times generated. I see a lot of obligation involved.
Is the TimesOnline correct? Perhaps they made a typo, swapped a source, . . . . . .
If your number, $1.3 million, is correct, then the events may be unrelated. Alternatively, there’s another $300k to be accounted for.
Arbalest on March 6, 2008 at 7:12 PM
zactly my point
windansea on March 6, 2008 at 7:26 PM
I’d also like to see square footage figures for the house lot and the “Rezko” lot, this will speak to the relative values of the 2 purchases and percentages of the whole deal. Lots without easements are worth bubkis
This should all be a matter of public records.
“boneheaded” does not cover this
windansea on March 6, 2008 at 7:30 PM
Gawd- I screwed up. I was thinking that the original asking price was $1.65 million.
He paid 1.65 million which was $300,000 less than the asking price.
I think this website will interest you since it calculates Obama getting $939,000 in “favors” which is kinda what you are saying.
The big issue for me is still why the sellers structured the deal the way they did. Were they asked to do it?
Buy Danish on March 6, 2008 at 7:38 PM
The lot in question was purchased by Rezco’s attorney, Michael Sreenan, and is up for sale again – with the same real estate broker involved in the sale. She is racking up a lot of commissions on this deal – not that there’s anything wrong with that :)
Here is convenient Media Matters story which includes a transcript of a Lisa Myer/NBC “web only” report whose video is no longer available.
Thanks George Soros!
Buy Danish on March 6, 2008 at 7:54 PM
the real estate person got recommended for a job but did not get it, not sure where I read this
windansea on March 6, 2008 at 8:08 PM
I gave a link to that story in this comment earlier today.
It could be nothing – Just Rezco handing out more candy all over town, but it is intesting that, like Obama, she has a very fuzzy memory of what happened, particularly as to how Rezco became involved.
Buy Danish on March 6, 2008 at 9:29 PM
Obama’s response to this is that he fervently Hopes it all goes away and sincerely wishes to Change the subject.
techno_barbarian on March 6, 2008 at 10:35 PM
Buy Danish
You ask a difficult question. I suspect that your link at 7:38 answers the detailed questions.
But at the higher level, why would the Rezkos make such a purchase, where they spend almost $1million, and can’t even legally get to the tangible asset?
Many others have asked this question before me, and the answers point to influence/obligation, and little else.
I make a lot of noise about this, because I think it shows a severe problem that we all should avoid.
Obama’s record is weak and short. He simply does not have the qualifications to be even a State Representative, let alone US Representative, Senator or President.
He clearly owes people, and has not yet mastered any of the methods of keeping such people beyond arm’s length (and yet still in easy reach)
His economic and foreign policy ideas are naive.
Obama really is the “New Coke” candidate.
Arbalest on March 6, 2008 at 10:47 PM