PERTZ

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Barack Obama's political campaigns, was arrested by federal agents Monday, Jan. 28, 2008, after his $2 million bail was revoked.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)

Indicted Obama Fundraiser's Bond Revoked

By MIKE ROBINSON – 12 hours ago

CHICAGO (AP) — A judge revoked the $2 million bond Monday for indicted businessman Antoin "Tony" Rezko, who has raised thousands of dollars for Barack Obama and Illinois politicians.

U.S. District Judge Amy J. St. Eve said she grew concerned after learning Rezko received $3.5 million from a company in Lebanon; he had claimed that he had no income. St. Eve said she feared Rezko could be a flight risk.

The real estate developer and fast food magnate was arrested Monday morning at his home in suburban Wilmette. At an afternoon hearing, the judge ordered him into custody and scheduled a Tuesday hearing where Rezko's attorneys will attempt to get bond reinstated.

Rezko has pleaded not guilty to charges of fraud, attempted extortion and money laundering, and is scheduled to stand trial Feb. 25. He is accused of pressuring businesses seeking work before two state regulatory boards to make campaign contributions and payoffs.

Rezko had long been a fundraiser for Gov. Rod Blagojevich and for Obama, the presidential candidate and senator from Illinois. Neither Democrat has been accused of wrongdoing in the case.

Obama has said he had no indication of problems with Rezko when he accepted thousands of dollars in campaign contributions. When prosecutors unsealed their charges against Rezko in 2006, Obama gave $11,500 in Rezko contributions to charities.

Obama has since sought to distance himself from Rezko, even as his main Democratic rival — Sen. Hillary Rodham Clinton — invoked Rezko's name and his "slum lord business" during a recent debate.

The Obama campaign declined to comment on Rezko's arrest Monday.

Federal prosecutors say Rezko was deceptive in leading St. Eve to grant bond by claiming in April 2007 that he had no income of his own and was instead living off the generosity of friends and relatives.

Assistant U.S. Attorney Reid J. Schar said $3.5 million from a Lebanon-based firm had been distributed to various funds and individuals, indicating that Rezko had more money than he had led the court to believe.

"This defendant has played a shell game and I think misled the court about what his assets are," Schar said.

He said Rezko's $2 million bond was no longer adequate to make certain he would remain in the United States and show up for trial.

Defense attorney Joseph Duffy said "there isn't anything that suggests flight." He said Rezko, a U.S. citizen born in Syria, returned from overseas to face the charges against him.

Duffy said initially that the $3.5 million was a loan secured by part of a 62-acre parcel of land south of Chicago's Loop. But then in the middle of the hearing he interrupted to say he had just been informed that it was not.

Asked after the hearing if the $3.5 million was a secured loan, he said: "I don't know that."

Prosecutors also said that some of the people who put up property in Rezko's name are renting out or trying to sell the property, raising concerns there may not be enough collateral to secure Rezko's bond.

Schar said in the case of one man who posted his home as bond, Rezko funneled the home's exact value back to him.

Once the estimated eight- to 12-week trial is over, Rezko still will face federal charges alleging he swindled General Electric Capital Corp. out of $10 million in connection with the sale of two pizza restaurant chains.

It was learned last week that an associate of Rezko's had sent a $10,000 campaign contribution to Obama's U.S. Senate campaign using money from the alleged pizza scheme. Obama's campaign then sent $40,000 in Rezko-related campaign contributions to charity.

Earlier this month, Obama gave to charity more than $40,000 in past political contributions from seven individuals with ties to Rezko. The decision to donate the money contributed to Obama's House and Senate campaigns — but not his current presidential bid — came after a published report that Obama is the unnamed "political candidate" in one paragraph of a 78-page prosecution document that outlines the case against Rezko.

Obama also has had to answer questions about how Rezko became involved in the purchase of the Obama family home as well as other ties to Rezko that go back more than 15 years.

Obama says he did five or six hours of work in the early 1990s for community groups that partnered with Rezko in apartment house development projects. Obama says he never represented Rezko in those deals, but his law firm at the time did represent Rezko's real estate development company, Rezmar.