The Chicago Sun-Times reports:
On a spring day in 2004, Nadhmi Auchi, one of the world's richest men, flew in to Midway Airport on a private jet. Met by a welcoming party that included Lt. Gov. Pat Quinn (there at the request of the Blagojevich administration) and businessman Tony Rezko, Auchi was brought to a downtown hotel where he was the guest of honor at a reception hosted by Blagojevich.
The Iraqi-born billionaire -- who lives in London -- had come to Chicago on business. He would go on to invest nearly $170 million in a prime piece of vacant land in the South Loop -- 62 acres along the Chicago River that Rezko wanted to develop.
Nadhmi Auchi joined by Gov. Blagojevich in 2004 during an attempt by the governor to get the Iraqi-born tycoon, one of the world's richest men, to invest in Illinois.
Now, Auchi is surfacing in Rezko's corruption case, set to go to trial Monday. Auchi is mentioned by prosecutors in the court filing that got Rezko's bail revoked and landed him in jail.
Rezko was indicted in October 2006 in a scheme to shake down firms seeking state pension business to enrich himself and Blagojevich's campaign fund. He got $3.5 million from Auchi's company in April 2007 but never told a judge about it, raising concerns that Rezko, a native of Syria, might flee the country.
Auchi wasn't accused of wrongdoing regarding Rezko. But he had faced legal troubles in Europe, prosecutors noted, having been "convicted several years ago in France on fraud charges" and sentenced to 15 months in prison, "but the sentence was suspended as long as Auchi committed no new crimes."
They raised the possibility that, even though Auchi's Luxembourg-based General Mediterranean Holding has taken control of the valuable South Loop property from Rezko, Auchi might be barred from entering the United States. "In November 2005, after Auchi was unable to enter the United States, Rezko directly appealed to the State Department to permit Auchi to enter the United States and, it appears, asked certain Illinois government officials to do the same," prosecutors wrote.
So how was Auchi not allowed in the United States in November 2005 but able to come here in 2004 -- despite his criminal conviction in France in 2003?
Auchi's London-based lawyer, Alasdair Pepper, wouldn't answer that. State Department and Homeland Security officials said they couldn't comment.
But Pepper did say Auchi maintains his innocence and is appealing the conviction "through applying to the European Court of Human Rights." Also, he said by e-mail that Auchi didn't authorize "Mr. Rezko to appeal to the State Department or to contact 'Illinois government officials' to help him obtain a visa."
Prosecutors haven't said which "Illinois government officials" Rezko contacted. Rezko was a longtime fund-raiser for Blagojevich and for Sen. Barack Obama, but aides to both said Rezko never reached out to them about Auchi.
Blagojevich did pose for pictures with Auchi at the April 2004 reception. Obama, now the leading Democratic presidential contender, wasn't there.
"The senator doesn't recall ever meeting Auchi," Obama spokesman Bill Burton said.
Said Pepper: "My client has no recollection of meeting Sen. Obama."
Those 62 Acres sure are making news.Here's a October 2007 story from the
Chicago Sun-Times:
Why did Ald. Edward M. Burke vote to approve Tony Rezko’s plans to develop the South Loop’s biggest piece of vacant land even as he was working for Rezko on that same deal?
Burke says: I forgot to abstain.
The much-conflicted alderman says he meant to sit out the vote. He’d even sent a letter to the Chicago Board of Ethics in August 2003 saying he would abstain from any Council votes on Rezko’s plan to put as many as 5,000 homes and stores on a 62-acre site along the Chicago River at Roosevelt Road.
But then Rezko’s project came before the City Council on March 31, 2004, and Burke cast his vote — in favor.
“An error occurred,” the alderman said in a written response to questions, “and Rule 14 was not invoked.”
That would be the Council rule under which aldermen are supposed to abstain from a vote when they have a conflict of interest.
Of course, it’s up to the alderman who has a conflict to invoke the rule.
Burke’s legal work for Rezko’s Rezmar Corp. is referenced in records on the 62-acre site Rezko wanted to develop with $140 million in city subsidies. The project fizzled, and Rezmar sold the land.
No word yet from Alderman Ed Burke on the Rezko "situation".
