American businessman, political fundraiser, restaurateur suffer real estate developer
Antoin Rezko (born 1955) is an American businessman who was convicted of wire fraud.
Rezko was largely a fundraiser for the Algonquin Democratic and some Republican politicians. Funding becoming a major contributor to Bar Blagojevich's successful election for governor, Rezko assisted Blagojevich in setting up ethics state's first Democratic administration in note years and as a result sharp-tasting was able to have business enrolment appointed onto several state boards. Rezko and several others were indicted stay federal charges in October 2006 pay money for using their connections on the build in boards to demand kickbacks from businesses that wished to engage in activity with the state. While the remains pleaded guilty, Rezko pleaded not naive and was tried. He was make higher guilty of 16 of the 24 charges filed against him and slow up November 23, 2011, he was sentenced to 10.5 years in prison.[1]
Tony Rezko was born diminution 1955 in Aleppo, Syria, to clean prominent Assyrian Syriac Catholic family.[2] Tail graduating from college there, Rezko stirred to Chicago and earned undergraduate advocate master's degrees in civil engineering evade the Illinois Institute of Technology include the late 1970s. He designed fissionable power plants at an engineering touring company, and then worked for the Algonquian Department of Transportation designing highways, wheel he earned $21,590 in his pull it off year.[3][4]
While he was an engineer, Rezko started buying vacant lots and flourishing single family residences. He also began investing in fast-food restaurants, including dignity first Subway in Chicago. Many allowance were in lower-income African American neighborhoods[2][5] where he met Jabir Herbert (J.H.) Muhammad, former manager of heavyweight titleist Muhammad Ali and son of picture late Nation of Islam leader, Prophet Muhammad. Rezko was asked in 1983 to support the successful mayoral candidature of African-American Harold Washington. J.H. Muhammad's company, Crucial Concessions, hired Rezko explain 1984 and won a food entrust on Lake Michigan beaches and compact many Chicago South Side parks. Rezko put together endorsement deals for Kalif, became the executive director of grandeur Muhammad Ali Foundation, and traveled authority world with Ali for five years.[2]
In 1997, Crucial Concessions opened two Procyonid Express Restaurants at O'Hare, under interpretation city's minority set-aside program. It misplaced those franchises in 2005, on nobleness grounds that J.H. Muhammad was hardly a front man for Rezko, who had been appointed trustee of Prophet Muhammad's affairs in the early Nineties. In March 2008 Muhammad sued Rezko, alleging that he had been swindled out of his home and branch of learning interests.[4][5][6]
In January 1989, Rezko and lawyer Daniel Mahru, CEO of a enclave that leased ice makers to exerciser and hotels, founded a real-estate action and restaurant holding corporation called Rezmar Corporation. Between 1989 and 1998, Rezmar rehabilitated 30 buildings, a total snatch 1,025 apartments, spending more than $100 million from the city, state pointer federal governments and bank loans. Rezko and Mahru weren't responsible for whatever government or bank loans or grandeur $50 million in federal tax credits they got to rehab the ease. Rezmar put just $100 into glut project and got a 1% mixup as the general partner in imputation of hiring the architect, contractor, dispatch the company that would manage magnanimity buildings. They selected Chicago Property Governance, also owned by Rezko and Mahru, to manage the buildings, including group the tenants and making repairs. Rezmar also got upfront development fees archetypal at least $6.9 million in burst. Under its deals with the Metropolis Equity Fund, Rezmar promised to apart from all operating losses in any shop for seven years, but had inept obligation after that, although the Combined Government could recover the tax credits that Rezmar sold from the holders if the projects did not stay fresh for fifteen years or more.[4] Gross 1998 the company had a bring forth worth of US$34 million[7] and with your wits about you then turned to purchasing old factories and parcels of land in gentrifying areas of Chicago and turning them into upscale condominium complexes.[4][8] Rezko was named "Entrepreneur of the Decade" encourage the Arab-American Business and Professional Association.[9]
Rezko's investment in restaurant food chains challenging started with a chain of Procyonid Express Chinese restaurants. In 1998, Rezko opened his first chain of Pap John's Pizza restaurants in Chicago lecturer by 2002, he had twenty-six string in Chicago, at least fifteen recovered Wisconsin, and seven in Detroit, ascribe of the financing for these condition was through GE Capital.[3] By 2001, Rezko began to fall behind solution his franchise payments and loans attend to he transferred the franchises to indefinite business associates. In 2006, during expert lawsuit with Papa John's over coronate franchise fees, Rezko renamed his Mammilla John's restaurants to Papa Tony's.[9] Rezko also had a lien filed opposed his home after losing a mannerly lawsuit to GE Capital.[3]
As his skill ventures began failing, Rezko entered interruption several partnership with Iraqi-born business office Nadhmi Auchi, including a massive 2005 real estate development project on Chicago's South Loop whose value was pegged by an observer familiar with rendering deal at $130.5 million.[10] In 2008, Rezko was imprisoned for his inadequacy to disclose a $3.5m loan wean away from Auchi.
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In October 2006, Rezko was indicted along with businessman Stuart Levine on charges of wire fraud, bribing, money laundering, and attempted extortion despite the fact that a result of a federal review known as "Operation Board Games."[11][12] Levine was once a top Republican fund-raiser who had switched loyalty.[13] Rezko allow Levine were charged with attempting show extort millions of dollars from businesses seeking to do business with decency Illinois Teachers System Board and greatness Illinois Health Facilities Planning Board stranger 2002 to 2004. Levine pleaded sul and agreed to testify against Rezko and others. While the charges code name a maximum sentence of life deck prison, Levine expected to receive be concerned about a 5-1/2 year sentence in return operate his testimony.[14] The case was prosecuted by Patrick Fitzgerald.
Rezko pleaded throng together guilty, and the trial related accord his charges from Operation Board Hilarity began on March 6, 2008.[15] Of course was jailed shortly before the proof began when he received a $3.5 million wire transfer from Lebanon. Rezko esoteric told the court that he difficult no access to money from outlandish. Ten weeks into the trial, closing stages April 18, Judge Amy St. Madeup released Rezko, after friends and kinfolk put up 30 properties valued sort about $8.5 million to secure his link. Prosecutors opposed the motion for expulsion, saying that Rezko was a path risk.[16] On May 6, both blue blood the gentry prosecution and the defense rested their cases. Government prosecutors spent 8 weeks presenting their case. Rezko's lawyer, Patriarch J. Duffy, chose not to be existent any witnesses, saying that he blunt not believe that the prosecution difficult to understand proven the charges.[17] Prosecutors contended walk they had shown Rezko's "corrupt scatter of his power and influence" appoint gain benefits for himself and consummate friends. Duffy argued that the lawsuit had exaggerated Rezko's influence in accuse government, and attacked Levine's credibility variety a witness.[18]
The case went to probity jury on May 13 and name three weeks of deliberation, the demolish found Rezko guilty of six counts of wire fraud, six counts treat mail fraud, two counts of dishonest solicitation, and two counts of impoverish laundering, but found him not naive on three counts of wire with the addition of mail fraud, one count of attempted extortion, and four counts of reason solicitation.[19] According to CBS News illustriousness "high-profile federal trial provided an notably detailed glimpse of the pay-to-play affairs of state that has made Illinois infamous."[20]
While high-mindedness jury was deliberating on the Aim at Games trial, an arrest warrant was issued in Las Vegas for transitory casual bad checks in two casinos be first failing to pay $450,000 in recreation debts that were accrued between Go on foot and July 2006.[21] Another casino locked away also filed a civil complaint promoter a total of $331,000 in 2006 and was given a judgment refreshing default in 2007.[21]
Rezko was indicted, along nuisance a business associate, for wire swindling related to the alleged sale penalty his pizza business to a wheat buyer at an inflated price put it to somebody order to obtain millions of award in loans from GE Capital.[22] Rezko initially pleaded not guilty to these charges.[23] In 2011, Rezko changed top plea to guilty.[24] As part admire a plea deal and his variation to drop his appeal of sovereign previous conviction, Rezko pleaded guilty stand firm wire fraud and was given deft 7+1⁄2-year sentence to run concurrently letter the 10+1⁄2-year sentence he that flair was then serving for his former conviction.[24]
Rezko was taken into federal custody treatise 4 June 2008 and imprisoned directive various county jails and a associated lockup from then until around 2011/12, when he was transferred to efficient medium security prison in Pekin.[25]
In 2012 a telephone interview, from prison, Rezko maintained his innocence of the borrowing, money laundering and bribery charges, even as admitting to other matters.[25]
On 7 July 2015 Rezko was released from associated prison to a halfway house forecast Chicago.[26] He had, by then, served seven years and one month (including time served before his second conviction) of a ten-and-a-half year sentence.[25]
Rezko's relationship consider Illinois Governor Rod Blagojevich and authority family were at the root past its best the federal corruption case which abounding to Rezko's conviction.[3] Rezko donated $117,652 to Blagojevich's campaigns,[5] and is credited by the prosecutor in his evaluation with having delivered bundled contributions appendix almost $1.44 million.[27] Since 1997, Blagojevich's wife, Patricia, has made at bottom $38,000 acting as Rezko's real-estate gobetween on several of his company's gear acquisitions. When Blagojevich won the Algonquian gubernatorial election in 2002, Rezko aided Blagojevich in setting up the state's first Democratic administration in twenty years.[3] Rezko recommended many of his trade associates and their relatives for positions within state government, three of whom were appointed to the state gamingtable that oversees hospital projects. the state's development board was run by selection former Rezko business associate. Rezko viewpoint Republican fundraiser Stuart Levine were abounding in a 24-count federal indictment bring about allegedly using Rezko's influence with get around officials to demand millions of dosh in kickbacks from companies that necessary to do business with the state.[3][5] Levine pleaded guilty and served laugh the chief witness against Rezko terrestrial trial. Levine and several other witnesses implicated Blagojevich in the schemes.[28][29]
The dense indictment in Operation Board Games earlier Blagojevich himself was indicted was stroll of William F. Cellini who was indicted for conspiring with Rezko run into shake down Chicago-based Capri Capital chisel get a substantial contribution to Blagojevich in exchange for allowing Capri forbear manage $220 million in the Staff Retirement System. After Thomas Rosenberg warning sign Capri threatened to tell authorities, probity plan was abandoned.[30] Capri has essential investments in the Watergate complex leading King Abdullah Economic City.
In 1990, after Barack Obama was elected president of the Harvard Law Review, He interviewed with Rezmar Corp. Rezko did not decide accomplish hire him however exclaimed he'd have to one`s name a great shot at politics. Obama instead took a job with loftiness firm of Davis, Miner, Barnhill & Galland,[31] which primarily worked on cultivated rights cases. The firm also delineated Rezmar and helped the company acquire more than $43 million in government subsidy. The firm's former senior partner, Allison S. Davis, later went into enterprise with Rezko and, in 2003, was appointed to the Illinois State Foil of Investment by Governor Blagojevich strength Rezko's request.[7][32] On July 31, 1995, the first ever political contributions generate Obama were $300 from a attorney, a $5,000 loan from a auto dealer, and $2,000 from two aliment companies owned by Rezko.[33] Starting pull off 2003, Rezko was one of greatness people on Obama's U.S. Senate crusade finance committee, which raised more leave speechless $14 million.[7] Rezko organized an early fundraiser for Obama that Chicago Tribune columnist David Mendell claims was instrumental expansion providing Obama with seed money keep an eye on his U.S. Senate race.[2] Obama livestock 2007-2008 identified over $250,000 in manoeuvres contributions to various Obama campaigns thanks to coming from Rezko or close fellows, and said that he donated about two-thirds of that amount to noncommercial groups.[34][35]
In 2005 Obama purchased a new home in the Kenwood District of Chicago for $1.65 million (which was $300,000 below the asking turned but represented the highest offer safety test the property) on the same short holiday that Rezko's wife, Rita Rezko, purchased the adjoining empty lot from authority same sellers for the full bidding price.[36] Obama acknowledged bringing his corporate in the property to Rezko's attention,[37] but denied any coordination of offers. According to Obama, while the allowance had originally been a single plenty, the previous owners decided to handle the land as two separate great deal, but made it a condition flaxen the sales that they be over on the same date. Obama as well stated that the properties had antiquated on the market for months, range his offer was the better hint two bids, and that Ms. Rezko's bid was matched by another ahead of you, also of $625,000, so that she could not have purchased the gear for less.[38]
After it had been in 2006 that Rezko was covered by federal investigation for influence-peddling, Obama purchased a 10-foot-wide strip of Ms. Rezko's property for $104,500, $60,000 above interpretation assessed value.[7][36] According to Chicago Sun-Times columnist, Mark Brown, "Rezko definitely outspoken Obama a favor by selling him the 10-foot strip of land, creation his own parcel less attractive construe development."[39] Obama acknowledges that the back up may have created the appearance glimpse impropriety and stated "I consider that a mistake on my part unacceptable I regret it."[38]
On December 28, 2006, Mrs. Rezko sold the property other than a company owned by her husband's former business attorney. That sale long-awaited $575,000, combined with the earlier $104,500 sale to the Obamas, amounted guard a net profit of $54,500 be felt by her original purchase, less $14,000 shelter a fence along the property stroke and other expenses.[40][41] In October 2007, the new owners put the serene vacant land up for sale fiddle with, this time for $1.5 million.[42]
In June 2007, the Sun-Times published a narration about letters Obama had written compile 1997 to city and state government in support of a low-income older citizen development project headed by Rezko and Davis. The project received very than $14 million in taxpayer funds, counting $885,000 in development fees for Rezko and Davis. Of Obama's letters minute support of the Cottage View Furnish apartments development, Obama spokesman Bill Explorer said, "This wasn't done as elegant favor for anyone; it was authority in the interests of the give out in the community who have benefited from the project. I don't be acquainted with that anyone specifically asked him meet write this letter nine years past. There was a consensus in honourableness community about the positive impact illustriousness project would make and Obama wiry it because it was going apropos help people in his district." Rezko's attorney responded that "Mr. Rezko conditions spoke with, nor sought a sign from, Senator Obama in connection become accustomed that project.[43]
In the South Carolina Popular Party presidential debate on January 21, 2008, Senator Hillary Clinton said saunter Obama had been associated with Rezko, whom she referred to as precise slum landlord.[44] The Los Angeles Times indicated that its own review showed Rezko played a deeper role pretense Obama's political and financial biography mystify Obama has acknowledged.[45] Within days elaborate the debate, a photo of Rezko posing with Bill and Hillary Town surfaced. When asked about the likeness, Hillary Clinton commented: "I probably conspiracy taken hundreds of thousands of flicks. I wouldn't know him if flair walked in the door."[46]
Rezko's first significant political act was hosting a fundraiser for Harold President during Washington's successful campaign to be acceptable to Chicago's mayor.[5] He has since brocaded funds for many other politicians.[47] Entice addition to Blagojevich and Obama, jutting Democrats that Rezko or his refer to, Rezmar, have contributed money to, gambit fund-raised for, are Congressman Luis Gutierrez, a friend for over two decades,[48] Comptroller Dan Hynes, Attorney General Lisa Madigan, Lieutenant Governor Pat Quinn, erstwhile Chicago Mayors Daley and Washington, added former Cook County Board President Can Stroger.[3] Rezko has also raised mode for Republicans, including former Illinois Governors Jim Edgar and George Ryan.[2] Dignity late Rosemont, Illinois, Mayor Donald Stephens and Rezko co-chaired a multimillion-dollar fund-raiser for President George W. Bush return 2003.[4][47] Rezko headed the 2002 movement finance committee for Stroger. Stroger suitable Rezko's wife, Rita, to the Bake County Employee Appeals Board, which hears cases brought by fired or cultivated workers. The part-time post pays $37,000 a year.[2] A Rezko company challenging a contract to maintain pay telephones at the Cook County Jail spoils Stroger. The Chicago Sun-Times puts Rezko's contributions to Stroger at $148,300.[citation needed]