The Chicago Sun-Times reports today in a headline, "Obama surfaces in Rekzo's federal corruption case." It’s a highly misleading headline for a total non-story. How does Obama surface? He was the unknowing recipient of money illicitly acquired by sleazebag real estate developer Tony Rezko and then funneled secretly through a business associate to Obama’s campaign. All money linked to Rezko was donated to charity by the Obama campaign last year.
Even the Sun-Times article acknowledges, "The Illinois senator isn’t accused of any wrongdoing." So why are they prominently pushing this non-story as a "news alert" and "Sun-Times exclusive" on the top of their website? The media love to attack the ethics of a politician like Obama who aggressively pursues ethics reform.
Here’s the story about Obama and Rezko, which I describe in more detail in my book. When Obama bought a new house and then purchased a small part of the next door lot from Rezko in 2006, he was caught up in the backlash a few months later when Rezko was indicted on corruption charges.Katie Couric reported, "As Barack Obama runs for the presidency, he’s being dogged by questions about his personal business dealings." At the first Democratic debate in 2007, Brian Williams of NBC asked Obama about his connections to Rezko. The same thing happened on ABC’s This Week with George Stephanopoulos. As Obama explained, "I didn’t see the appearance of impropriety because I paid full price for the land." But this fact didn’t stop the media from implying impropriety on Obama’s part.
When Obama began his first run for public office in 1995, Rezko was among his first contributors. After Obama began looking for a new home in Hyde Park in 2005, it’s not surprising that he asked for advice from Rezko, a real-estate developer who was familiar with the neighborhood. Rezko discovered that the lot next door to the house Obama was eyeing was for sale by the same owner, and he bought it the same day the Obamas closed on their home. Fox News Channel even incorrectly reported that Rezko "sold half that lot to Obama for 1/3 its original value" when he actually sold one-sixth of the lot for one-sixth of its value ($104,500).
Tony Rezko certainly is a sleazebag, but he’s a sleazebag with his hands on many politicians in both parties. Rezko donated money to every major Democratic politician in Illinois, then helped organize a $3.5 million fundraiser for President George W. Bush in 2003. After giving large campaign donations to Democratic Illinois governor Rod Blagojevich, Rezko arranged to have his buddies appointed by Blagojevich to state boards such as the Teachers’ Retirement System Board and the Illinois Health Facilities Planning Board. With his friend Stuart Levine, Rezko threatened to hold up a $220 million deal to invest teachers’ pension fund money unless $2 million was paid to Levine or $1.5 million was donated to Blagojevich’s campaign.
However, at the time Obama bought his house, there was no public indication of Rezko’s problems. When Obama bought a small strip of Rezko’s land in 2006, rumors were swirling around Chicago that the federal government was investigating Rezko, but he wasn’t indicted until October 2006. Rezko’s eye for scouting political talent was amazing, but he did not capitalize on Obama’s influence. Obama said he had known Rezko for twenty years and "he had never asked me for anything. I’ve never done any favors for him." In fact, Rezko already had a far more valuable politician as his buddy: Governor Rod Blagojevich. The reality is that all politicians have connections to people like Rezko. What matters is whether they acquiesce to the demands of such donors or serve the public good.
The Chicago Sun-Times also uses the opportunity to dredge up an old report that in 1997, Rezko’s company failed to turn the heat back on in one of his buildings, while giving $1,000 to Obama’s campaign fund. However, there’s no evidence that Obama knew about problems with Rezko’s buildings, as a senator or as a lawyer who did some minor legal work on the deals. A state senator doesn’t deal with tenant complaints, and the Chicago newspapers never reported on Rezko’s dealings as a slumlord until after he was indicted.
The Chicago Sun-Times knows that Obama’s name sells newspapers. That’s why they’re willing to keep reporting these stories as front-page exclusives even though there’s no story here, and no scandal to report. As a presidential candidate, Obama is going to get more scrutiny than anyone else. But he doesn’t deserve to be smeared like this.
Cross-posted at Daily Kos.
