Barack Obama's Name surfaces in Rekzo's federal corruption case

The Chicago Sun-Times reports:

For the first time, Democratic White House hopeful Barack Obama has surfaced in the federal corrupton case against his longtime campaign fund-raiser, Tony Rezko, the Chicago Sun-Times has learned.

The Illinois senator isn’t accused of any wrongdoing. And there’s no evidence Obama knew contributions to his 2004 U.S. Senate campaign came from schemes Rezko is accused of orchestrating.



The allegations against Rezko that involve Obama are contained in one paragraph of a 78-page document filed last month in which prosecutors outline their corruption and fraud case against Rezko, who was also a key money man for Gov. Blagojevich and other politicians.

Rezko is set to go to trial Feb. 25. The revelation that Obama’s name could come up in court is a political headache he doesn’t need as he heads into a round of primaries that are likely to determine his party’s nomination for president.

Obama is not named in the Dec. 21 court document. But a source familiar with the case confirmed that Obama is the unnamed “political candidate” referred to in a section of the document that accuses Rezko of orchestrating a scheme in which a firm hired to handle state teacher pension investments first had to pay $250,000 in “sham” finder’s fees. From that money, $10,000 was donated to Obama’s successful run for the Senate in the name of a Rezko business associate, according to the court filing and the source.

Rezko, who was part of Obama’s senatorial finance committee, also is accused of directing “at least one other individual” to donate money to Obama and then reimbursing that individual — in possible violation of federal election law.

A spokesman for U.S. Attorney Patrick Fitzgerald declined to comment.

Obama — a state senator when he got the contributions in 2004 — has moved to distance himself from Rezko since his longtime friend and supporter was indicted in October 2006. After news reports that Obama had engaged in a real estate transaction with Rezko’s wife at a time Tony Rezko was known to be under investigation, the senator called the episode “boneheaded” and “a mistake.”

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