The Trial That Roared

Tony Rezko and the "Chicago Way"

Editor's Note: Thomas's commentary is in blue and Marcie's is in purple.

Tony Rezko is a well-known figure in Chicago political circles. He is a fixer. He is very good at getting anyone virtually anything and it always comes with a price. Need a job on the governor's staff? Slide him some money, and he will pull all the right strings. Right now, he is pulling no strings because he is on trial. He was indicted in October of 2006 for extortion and wire fraud, and he is facing down Patrick Fitzgerald and crew who are determined to put him away. But there is more to this little drama than most know about. See, Mr. Rezko has many, many ties to big names in Chicago political circles, including connections to Barack Obama. He also has international ties which, to say the least, look no different than the "Chicago Way" of politics he is used to. Let us give you a primer about him, his associations, and what he is on trial for ...

First, he's on trial for allegedly extorting funds from businesses looking to do business with the Illinois Teachers Retirement System Board and the Illinois Health Facilities Planning Board. Additionally, he is facing a wire fraud charge for false financial transactions in an attempt to secure a $10 million loan from GE Capital for his pizza businesses. The feds have him dead to rights on this, but what is interesting is that if he goes down he likely won't be the only one. He has ties to Bob Cellini and Robert Kjellander, two prominent Republican "bosses" in Illinois politics; both of which are sitting under federal investigations for corruption. Rezko has had numerous "business" dealings with these two men, and none of them have been on the up-and-up. Mr. Cellini has made a fortune out of shady business deals and real estate, and he worked with Mr. Rezko in a shakedown of the producer of the Hollywood movie "Million Dollar Baby." Mr. Kjellander is basically Mr. Cellini's "gofer," who quietly pocketed $809,000 in finder's fees in a bond deal closely connected to the governor. $600,000 was paid to Mr. Rezko and his cronies as a "loan." And to say that he has a "passing relationship" with Governor Rod Blagojevich is a lie. He's been doing business with the governor for years, and has paid kickbacks to him to have his cronies placed on commissions that oversee businesses so they can shake them down, and all the while they're paying kickbacks to Governor Blagojevich.

But if you think that he only has ties to Chicago politicos, think again. Two names are bound to turn up in court proceedings. In fact, one already has. His name is Nadhmi Auchi and he is an Iraqi-born British billionaire who has been involved in two, high-level fraud scandals. The first was the Clearstream affair. Clearstream was a clearing bank that was involved in money laundering and tax evasion, and Mr. Auchi was at the center of the investigations. They also surrounded the scandal with the petroleum company Elf, and the United Nations Oil-For-Food program. For that, he was fined three million dollars, and received a fifteen month suspended sentence in the biggest corporate scandal in Europe since the end of World War II. Mr. Auchi was also involved in the plot to assassinate Prime Minister Abdul-Karim Qasim of Iraq; a plot cobbled together by Saddam Hussein in 1959. How he fits into the puzzle is a $3.5 million loan given to Mr. Rezko three weeks before Mr. Rezko helped Barack Obama buy a house in Chicago. At the time, Mr. Rezko was still under investigation for extortion and fraud. It is speculated that some of that money went into the house purchase. After the indictment was handed down to Mr. Rezko, Mr. Auchi sent another $3.5 million loan to him, and when prosecutors discovered that they had Mr. Rezko's bond revoked claiming he was a flight risk.

Player number two is Aiham Alsammarae who was the Minister of Energy in the Interim Iraqi government in 2003. He left in 2005 when the Iraqis were allowed to elect their government. In 2006, he was arrested by Iraqi authorities when it was discovered that over $600 million in reconstruction funds were either misappropriated or went missing altogether. Mr. Rezko had a deal worked out with Mr. Alsammarae to build a power plant in Iraq, and train the guards there through his own security company, Companion Security. Both Mr. Auchi and Mr. Alsammarae have loaned millions to Mr. Rezko. Consequently, Mr. Alsammarae paid Blackwater USA to break him out of jail before his trial could go forward, and it is believed he fled to Chicago. While Mr. Alsammarea's ties to Mr. Rezko aren't exactly as deep as Mr. Auchi's are, they are still questionable. It was Mr. Alsammarae who approved the power plant in Iraq that Mr. Rezko was involved with, and that plant was never even started once Mr. Alsammarae was arrested by Iraqi authorities. It's alleged that a lot of the $600 million-plus that went missing for Iraqi reconstruction might have found it's way to Mr. Rezko, and was bundled as political contributions to local politicians, such as Governor Blagojevich, and national ones, like Senator Obama.

Which brings us to Senator Obama's involvement with Mr. Rezko. While Senator Obama claims they were "friends," he states they were not close. Yet in 2005 he helped Senator Obama buy a home in Chicago for $300,000 below the asking price. On the same day Mr. Rezko's wife, Rita, bought the adjacent lot for the full price. Both had to be sold on the same day or neither deal could be done. Later, Senator Obama bought a ten foot strip of the property owned by Rita Rezko for $60,000 above the assessed value. It has also come to light that Mr. Rezko has donated a great deal of money to Senator Obama's presidential campaign, and in light of the indictment, Senator Obama has returned a small portion of it, and donated the rest to charity. But the amount he claims to have received is three times lower than the amount the Chicago Sun-Times discovered in June of last year. So, Senator Obama is not exactly being truthful about the donations he has received from Mr. Rezko, nor is he being upfront about his relationship with him. Numerous blogs, including Rezkorama and RezkoWatch have been digging into the relationship between these two men, and their connection to the "Chicago Way" of politics.

What does all of this mean? Well, for one thing, Tony Rezko is in trouble. He is looking at a long prison sentence if he's convicted. And this trial, with all of it's twists and turns and uncomfortable facts, won't reflect well on Governor Blagojevich. US attorney Patrick Fitzgerald is also steering the investigation of Governor Blagojevich, and it was confirmed in the Rezko trial that Governor Blagojevich was "Public Official A" who was directly connected to Tony Rezko. Mr. Cellini and Mr. Kjellander might also not appreciate the prying eyes of federal investigators when they are named in this trial, and they could very well face indictments of their own. Neither Mr. Auchi or Mr. Alsammarae will likely see any sort of probe. (Mr. Auchi is a British citizen, and it's unlikely that extradition would be asked for as all he has done, thus far, is provide Mr. Rezko with a couple of large loans.) Mr. Alsammarae is still a wanted fugitive in Iraq, and if found he would probably be sent back there to face the charges still waiting for him. Senator Obama, on the other hand, stands to lose the most in this next to Tony Rezko. He has presented himself as a reformer with a squeaky-clean image. What is being revealed is that he was involved with Tony Rezko on more than just a house purchase, and has benefited from Mr. Rezko's friendship for a few years. If he does convince voters he was unaware of what was going on, then it sends a message that he is too inexperienced to even see corruption when it rears it's ugly head. And, at the very least, a Senate Ethics investigation could be launched to look into the house purchase. From the outside, the deal stinks, and could be construed, under Senate rules as a gift. That is illegal, and an apology isn't going to get him out of that trouble.

He is a scholar of history, especially American history, and the United States Constitution. She has finished her undergrad studies, graduating with a BA in English and history and will move onto law school this fall where she will specialize in Constitutional Law. Together, Thomas and Marcie form the vanguard of conservative opinion at Hamilton, Madison, and Jay -- a blogging site devoted to advancing the conservative cause by challenging the liberal lies and deceit spread by the media, and espoused by the Left in general. Both are expert debaters, and have beaten many liberals into submission with their collective wit, and unmatched knowledge. The pair is married, and resides in Arizona

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