Indicted Obama Fundraiser's Bond Revoked
Indicted political fundraiser Antoin "Tony" Rezko leaves Chicago's federal building in this Oct. 19, 2006, file photo. Rezko, who has poured thousands of dollars into Barack Obama's political campaigns, was arrested by federal agents Monday, Jan. 28, 2008, after his $2 million bail was revoked. Rezko has pleaded not guilty to charges of fraud, attempted extortion and money laundering, and is scheduled to stand trial Feb. 25. (AP Photo/Nam Y. Huh)
(Nam Y. Huh - AP)
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Tuesday, January 29, 2008; 2:52 AM
CHICAGO -- An indicted businessman who poured thousands of dollars into the campaigns of Barack Obama and other politicians was jailed Monday after prosecutors disclosed he received $3.5 million from an Iraqi billionaire while claiming to be broke.
Real estate developer and fast-food entrepreneur Antoin "Tony" Rezko was arrested Monday at his home in Wilmette and held after his attorneys failed to dissuade Judge Amy J. St. Eve from revoking his $2 million bond.
"This defendant has played a shell game and I think misled the court about what his assets are," federal prosecutor Reid J. Schar said.
Rezko is charged with scheming to pressure companies seeking state business for kickbacks and campaign contributions.
His name has surfaced in the Democratic presidential race because of his ties to Obama, who ended up donating to charity thousands of dollars in campaign contributions connected to Rezko. During a South Carolina debate, Hillary Rodham Clinton accused Obama of representing Rezko "in his slum landlord business" when Obama was a young Chicago lawyer.
Obama actually represented partners of Rezko's company in government-subsidized apartment rehabilitation projects, not Rezko himself. Obama says he did no more than five or six hours of work for the partners.
Rezko has contributed thousands of dollars to the campaigns of both Obama and Gov. Rod Blagojevich _ neither of whom is accused of any wrongdoing.
Rezko is due to start trial Feb. 25 on charges of mail fraud, wire fraud, money laundering and attempted extortion. He is charged separately with swindling the General Electric Capital Corp. out of $10 million in the sale of a pizza restaurant business.
Obama's name has not come up in connection with any of the corruption charges swirling around Rezko. Prosecutors indicate the source of Rezko's clout was somewhere within Blagojevich's administration.
Federal prosecutors say Rezko was deceptive in leading St. Eve to allow various relatives and friends to post their property to secure his bond while claiming he was broke and living off relatives' generosity.
An FBI affidavit said Rezko actually received $3.5 million from a Lebanon-based bank account of General Mediterranean Holdings, a Luxembourg company owned by London-based Iraqi billionaire Adhmi Auchi. Rezko's attorney said Rezko has had business dealings with Auchi.
Forbes magazine listed Auchi in 2007 as the world's 279th richest man. He also has been convicted of fraud in France, the government said in a court filing seeking the warrant to arrest Rezko.
