Wednesday, June 04, 2008

Rezko Trial Verdict Due Shortly; UPDATE: Guilty on 16 Counts

Tony Rezko, a close associate to Barack Obama, is awaiting the verdict to be handed down by the jury shortly. Rezko had pleaded not guilty to scheming to get kickbacks from companies wanting state contracts.

Rezko's ties to Obama include the sale of property to Obama at sub-market prices, but that is not related to this trial. It does suggest that Obama has a very nuanced set of principles as to who he considers friends and associates.

UPDATE:
This isn't much of a surprise, but Rezko was found guilty on 16 of 24 counts.
The jury delivered its guilty verdict on 16 of 24 counts after a nine-week trial.

Rezko has known Obama since he entered politics and was involved in a 2005 real estate deal with the Democratic presidential candidate, although testimony barely touched on their relationship. Most of the focus was on shakedowns prosecutors said Rezko arranged when he was a top adviser to Blagojevich.

Neither Blagojevich nor Obama has been accused of wrongdoing.

Rezko's defense attorneys maintained that the government had little evidence tying him to corruption and that the star witness, admitted political fixer Stuart P. Levine, was not credible because years of drug use had damaged his memory.

Levine was a member of a state board that decided which hospitals got built and was on a panel that decided which investment firms got allocations from a $40 billion fund that pays the pensions of retired teachers.

Levine testified that Rezko, drawing on the political clout he developed as a Blagojevich fundraiser, stacked both boards with members who could be relied upon to follow orders when big-money decisions came up. Prosecutors said he used that clout to shake down companies and individuals hoping for state business for $7 million in kickbacks.

While Obama's name rarely surfaced during testimony, the case drew attention to Obama's relationship with Rezko, a man Sen. Hillary Rodham Clinton derided in one televised debate as a "slum landlord."

Rezko, a real estate developer and fast-food entrepreneur, had been friendly with Obama for years, even offering him a job after Obama finished law school. Obama turned down the offer, but a political friendship developed.

Rezko donated more than $21,000 to Obama and raised far more for his campaigns in Illinois, though not his presidential bid.

He also advised Obama on the purchase of a new Chicago home and, in his wife's name, purchased a vacant lot next to the new Obama home at the same time from a couple who insisted on selling both pieces of property simultaneously. The purchase raised questions about the extent of his help.

The charges against Rezko had nothing to do with Obama, who has donated $150,000 in Rezko-related contributions to charity.

Rezko, 52, was charged with scheming with Levine to split a $1.5 million kickback from a contractor who wanted to build a hospital in northern Illinois and to shake down money management firms wanting to invest in the teacher pension fund.

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