Capitol Fax.com - Your Illinois News Radar

Obamarama - Law firm did work for Rezko, but not much connection

Posted in:

Illinois
Obama

The Sun-Times has a series of articles today on yet another relationship between Barack Obama and Tony Rezko…

When Barack Obama took a job at a small Chicago law firm in 1993, the first name on the door of the firm was Allison S. Davis.

Five years later, having left his Davis Miner Barnhill & Galland firm, Davis invested in Antoin “Tony'’ Rezko’s final government-subsidized, low-income housing project, state records show, in a deal handled by Davis’ former law firm.

Davis and Rezko also went into business together, building upscale homes in the booming Kenwood neighborhood where Davis lives. The legal work on those deals was also done by Davis’ former law firm, where Obama was working.

Of course, there’s a Blagojevich connection, too…

Four years ago, Blagojevich appointed Davis to the Illinois State Board of Investment, which controls state pension funds — one of a series of appointments the governor made at Rezko’s request.

* And then there’s this…

For more than five weeks during the brutal winter of 1997, tenants shivered without heat in a government-subsidized apartment building on Chicago’s South Side.

It was just four years after the landlords — Antoin “Tony'’ Rezko and his partner Daniel Mahru — had rehabbed the 31-unit building in Englewood with a loan from Chicago taxpayers.

Rezko and Mahru couldn’t find money to get the heat back on.
But their company, Rezmar Corp., did come up with $1,000 to give to the political campaign fund of Barack Obama, the newly elected state senator whose district included the unheated building.

* But in the same article…

Just what legal work — and how much — Obama did on those deals is unknown. His campaign staff acknowledges he worked on some of them. But the Rezmar-related work amounted to just five hours over the six years it said Obama was affiliated with the law firm, the staff said in an e-mail in February.

* They have an extensive Q&A with Obama’s campaign…

Sun-Times question: Please explain what legal work the senator performed on each of those Rezmar projects. I have a copy of a legal bill showing Sen. Obama worked on the Central Woodlawn project. Please include the number of hours he spent on each Rezmar deal, the dates he worked on those deals, and to whom he reported at the firm, whether that was Allison Davis and/or William Micelli.
Obama campaign answer: Senator Obama worked on several projects in which the firm’s principal client was a not-for-profit corporation. The projects entailed negotiations between the firm’s primary not-for-profit client and the Rezmar-related entity that served as co-general partner or co-venturer of the not-for-profit.

Once the negotiations between the not-for-profit and Rezmar-related entity were completed, the firm represented the combined entity, usually an Illinois limited partnership or Illinois limited-liability company.

The Senator, relatively inexperienced in this kind of work, was assigned to tasks appropriate for a junior lawyer. These tasks would have included reviewing documents, collecting corporate organizational documents, and drafting corporate resolutions. The Senator reported primarily to former partner Allison Davis and occasionally to William Miceli.

Q: At the time of those deals, Tony Rezko was a client of the senator’s firm, a campaign donor to the senator, a personal friend, and a business partner with the senator’s boss, Allison Davis. But Mr. Rezko was also a landlord to many constituents living in the state Senate district that Senator Obama represented at the time. And many of those Rezmar properties had fallen into disrepair, while Rezmar began to fail financially. Did the senator ever talk to Tony Rezko about the deteriorating status of his housing projects?

A: To reiterate: the firm did represent entities in which Tony Rezko had an interest but never Tony Rezko, personally. Senator Obama does not remember having conversations with Tony Rezko about properties that he owned or any specific issues related to those properties.

Q: In this situation, how did the senator decide whose interests took precedence: Mr. Rezko, Mr. Davis, the senator’s constituents?

A: The Senator, then a junior lawyer, did not have the authority, the assignment or the opportunity to make such decisions. But it is important to keep in mind that the whole enterprise of affordable housing is geared toward improving housing stock for those unable to afford market-priced housing. The goals of the firm’s clients were consistent with the needs of communities benefiting from affordable housing initiatives.

Reading through all the questions and answers, it doesn’t look like there’s much there, as long as Obama’s people are being honest.

* Rezmar deals involving Davis Miner law firm

* Troutman dad got rehab deal - Father of indicted alderman received $500K loan to redevelop apartments

* Top recipients of Rezko campaign cash

posted by Rich Miller
Monday, Apr 23, 07 @ 6:58 am

Comments

Rich, you have a section for “Obamarama” why not a section for “Obamainations” or something to that effect. Nothing against the freshman Senator with no executive experience running for President, just a place to keep track of his mishaps.

Comment by chicountryguy Monday, Apr 23, 07 @ 8:35 am
Wow, according to the Sun Times little donation chart, LaHood is a Dem.

Comment by Wumpus Monday, Apr 23, 07 @ 8:54 am
Sorry Rich,
You say there’s nothing to this story but it made the national news. The point is, Tony is a slum landlord that left his tenants without heat and Obama is his friend.
I tend to not associate with people that are slum landlords. And I certainly would never have someone like that as a friend. Character matters.

Comment by Anonymous Monday, Apr 23, 07 @ 7:50 pm
Who says Obama and Rezko are friends?

Comment by steve schnorf Monday, Apr 23, 07 @ 7:52 pm
Anon 7:50, what the national news does is their business, and they don’t do it very well. I’m not impressed that it was picked up. It’s a sensational charge, but there’s no real connection yeet.

Comment by Rich Miller Monday, Apr 23, 07 @ 8:05 pm
Friends for 17 years. In case you missed it they bought property together.

Comment by Anonymous Monday, Apr 23, 07 @ 8:05 pm
Duh, anon. But that wasn’t today’s story, was it?

Comment by Rich Miller Monday, Apr 23, 07 @ 8:06 pm
I was responding to Steve.

Comment by Anonymous Monday, Apr 23, 07 @ 8:10 pm
Big story? maybe not. On the other hand it is serious journalism which is more than Sam Zells paper was doing this weekend with their puff piece on Mrs O.
As for the content/charge their is something to be said for holding folks accountable for the choices they make when they choose friends and business partners. In this case it is even harder to overlook the serial nature of the plundering of the public trough since the developer, lawyers, politicians are all such granola crunching goo goos that are all capable of bursting into gales of indignation anytime Haliburton is mentioned.

Comment by mean people suck Monday, Apr 23, 07 @ 9:16 pm
Rich, The story on Obama bothered me. I thought the only dealing he had with Rez was that real estate deal. I read enough. Can’t the Democrats get anyone that’s really clean?

Comment by anon Monday, Apr 23, 07 @ 10:11 pm
Rich, you have to admit there is a story here. At least to me there is if it affects my vote now that I have more info. Let’s not be naive. Obama and Rezko have known each a lot longer than I certainly knew before this story. I can’t believe I am saying this but…Good reporting job Sun Times.

Comment by anon Monday, Apr 23, 07 @ 10:26 pm
And nothing in today’s follow-ups that connects the dots.

Comment by Rich Miller Tuesday, Apr 24, 07 @ 6:43 am
It’s the uneasy perception. What kind of characters do you call friends.

Comment by Anonymous Tuesday, Apr 24, 07 @ 7:21 am
Check Obama’s response to the story in today’s Trib after giving his speech on Foreign Affairs.

“One of the perils of public life is that you end up being responsible for, or you’re held responsible for, associations that you didn’t necessarily know were a problem,” Obama told the Tribune after making a major address to outline his foreign policy goals.

Sounds a little naive from a man who wants to lead the US in a tough world. I don’t think Obama all that naive… so that leads me to believe the swamp-left nailed Obama correctly as master triangulator.

Comment by Bill Baar Tuesday, Apr 24, 07 @ 7:28 am
Don and Roma are talking about this today. Typical Chicago politics. Stinks to high heaven. They all take his money, buddy, buddy and now everyone wants to disown poor Tony.

Comment by Anonymous Tuesday, Apr 24, 07 @ 7:32 am
Hey folks, Obama is a P-O-L-I-T-I-C-I-A-N remember? It takes money, connections, and sucking up to make it in the arena in addition to pesonal ambition…Obama is not that different from other ambitious pols. He IS smarter, more articulate, at the right place at the right time and uses his “outsider” status quite well…this story is a good test for the man…let’s see how he handles being under the microscope with many months to go before the primaries…

Comment by Loop Lady Tuesday, Apr 24, 07 @ 7:37 am