Rezko-Obama 11-6-07 "IT WAS A MISTAKE"

Obama on Rezko deal: It was a mistake
November 5, 2006
BY DAVE MCKINNEY AND CHRIS FUSCO Staff Reporters Contributing: Mark Brown
U.S. Sen. Barack Obama expressed regret late Friday for his 2005 land purchase from now-indicted political fundraiser Antoin "Tony" Rezko in a deal that enlarged the senator's yard.
"I consider this a mistake on my part and I regret it," Obama told the Chicago Sun-Times in an exclusive and revealing question-and-answer exchange about the transaction.
In June 2005, Obama and Rezko purchased adjoining parcels in Kenwood. The state's junior senator paid $1.65 million for a Georgian revival mansion, while Rezko paid $625,000 for the adjacent, undeveloped lot. Both closed on their properties on the same day.

Last January, aiming to increase the size of his sideyard, Obama paid Rezko $104,500 for a strip of his land.
The transaction occurred at a time when it was widely known Tony Rezko was under investigation by U.S. Attorney Patrick Fitzgerald and as other Illinois politicians befriended by Rezko distanced themselves from him

In the Sun-Times interview, Obama acknowledged approaching Rezko about the two properties being up for sale and that Rezko developed an immediate interest. Obama did not explain why he reached out to Rezko given the developer's growing problems.
Last month, Rezko was indicted for his role in an alleged pay-to-play scheme designed to fatten Gov. Blagojevich's political fund. Rezko also was accused of bilking a creditor.
"With respect to the purchase of my home, I am confident that everything was handled ethically and above board. But I regret that while I tried to pay close attention to the specific requirements of ethical conduct, I misgauged the appearance presented by my purchase of the additional land from Mr. Rezko," Obama said.

It was simply not good enough that I paid above the appraised value for the strip of land that he sold me. 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," the senator said.
The land deal came up in a court hearing Friday that delved into Rezko's finances. Obama said he has not been approached by federal prosecutors about the transaction nor has plans to go to them about it.
Obama and Rezko have been friends since 1990, and Obama said the Wilmette businessman raised as much as $60,000 for him during his political career. After Rezko's indictment, Obama donated $11,500 to charity--a total that represents what Rezko contributed to the senator's federal campaign fund.