Nov 4, 2006 8:35 pm US/Central
Obama Regrets Arrangements With Rezko
Senator Acknowledged That The Dealings Could Appear Inappropriate
CHICAGO (AP) ―
U.S. Sen. Barack Obama expressed regret Saturday over his financial dealings with a political fundraiser accused of shaking down companies looking to do business with the state.
Obama acknowledged Saturday that the arrangements with Antoin "Tony" Rezko raised the possible appearance of impropriety.
"It was a mistake to have been engaged with him at all in this or any other personal business dealing that would allow him, or anyone else, to believe that he had done me a favor," Obama said in a written statement. "For that reason, I consider this a mistake on my part and I regret it."
Obama and his wife closed on a $1.65 million home last year in the city's Kenwood neighborhood. The same day, Rezko's wife closed on a $625,000 vacant lot next the home, the Chicago Tribune reported on Wednesday.
Both lots had once been part of the same estate, but were listed for sale separately by the owner.
A city ordinance required Rezko to fence the line between the properties. But the Obamas paid for an attorney and architects to inquire about the fence with the Commission on Chicago Landmarks, partly because Obama's wife once worked there and because they wanted to ensure it was done properly, Obama has said.
Rezko was to pay $14,000 for the fence, although that bill has not been paid, the fence company told the Tribune.
The landscaper who mows Obama's lawn also mows Rezko's 7,500-square-foot yard, Obama said.
Obama paid Rezko $104,500 in January for a portion of the lot to create more space between his house and the fence. Obama has said the arrangements were ethical and proper.
However, in Saturday's statement he admitted that he "misgauged" the implications suggested by his purchase of the additional land.
"It was simply not good enough that I paid above the appraised value for the strip of land that he sold me," Obama said. "It was a mistake to have been engaged with him at all in this or any other personal business dealing that would allow him, or anyone else, to believe that he had done me a favor."
Rezko has pleaded not guilty to charges he plotted to squeeze millions of dollars in kickbacks out of investment firms seeking state business. He also has pleaded not guilty to obtaining a $10.5 million loan from GE Capital through fraud and swindling a group of investors.
Rezko and his companies donated nearly $20,000 to Obama's state Senate races and federal fund.
Obama has said he would divest the federal donation.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Get breaking news alerts
Click to enlarge
Click to enlarge
Stumble It!
