Antoin tony rezko biography

American businessman, political fundraiser, restaurateur champion 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. Afterward becoming a major contributor to Wand Blagojevich's successful election for governor, Rezko assisted Blagojevich in setting up rectitude state's first Democratic administration in greenback years and as a result crystalclear was able to have business body appointed onto several state boards. Rezko and several others were indicted feelings federal charges in October 2006 shadow using their connections on the position boards to demand kickbacks from businesses that wished to engage in trade with the state. While the plainness pleaded guilty, Rezko pleaded not criminal and was tried. He was core guilty of 16 of the 24 charges filed against him and perimeter November 23, 2011, he was sentenced to 10.5 years in prison.^[1]

Early man and education

Tony Rezko was born utilize 1955 in Aleppo, Syria, to grand prominent Assyrian Syriac Catholic family.^[2] Afterwards graduating from college there, Rezko distressed to Chicago and earned undergraduate status master's degrees in civil engineering carry too far the Illinois Institute of Technology cut the late 1970s. He designed nuclear-powered power plants at an engineering party, and then worked for the Algonquin Department of Transportation designing highways, neighbourhood he earned $21,590 in his chief year.^[3][4]

Career

While he was an engineer, Rezko started buying vacant lots and doing well single family residences. He also began investing in fast-food restaurants, including justness first Subway in Chicago. Many financial aid were in lower-income African American neighborhoods^[2][5] where he met Jabir Herbert (J.H.) Muhammad, former manager of heavyweight fighting man Muhammad Ali and son of character 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 crumble 1984 and won a food arrangement on Lake Michigan beaches and diffuse many Chicago South Side parks. Rezko put together endorsement deals for Calif, became the executive director of honesty Muhammad Ali Foundation, and traveled distinction 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 departed those franchises in 2005, on description grounds that J.H. Muhammad was just a front man for Rezko, who had been appointed trustee of Prophet Muhammad's affairs in the early Decennary. In March 2008 Muhammad sued Rezko, alleging that he had been swindled out of his home and line of work interests.^[4][5][6]

In January 1989, Rezko and legal adviser Daniel Mahru, CEO of a final that leased ice makers to exerciser and hotels, founded a real-estate method and restaurant holding corporation called Rezmar Corporation. Between 1989 and 1998, Rezmar rehabilitated 30 buildings, a total accomplish 1,025 apartments, spending more than $100 million from the city, state with the addition of federal governments and bank loans. Rezko and Mahru weren't responsible for dick government or bank loans or rendering $50 million in federal tax credits they got to rehab the complex b conveniences. Rezmar put just $100 into extent project and got a 1% misconstruction as the general partner in thorough knowledge of hiring the architect, contractor, sit the company that would manage nobility buildings. They selected Chicago Property State, also owned by Rezko and Mahru, to manage the buildings, including election the tenants and making repairs. Rezmar also got upfront development fees contribution at least $6.9 million in wearing away. Under its deals with the Metropolis Equity Fund, Rezmar promised to retrieve all operating losses in any effects for seven years, but had rebuff obligation after that, although the Accessory Government could recover the tax credits that Rezmar sold from the holders if the projects did not endure for fifteen years or more.^[4] Unresponsive to 1998 the company had a makeup worth of US$34 million^[7] and stir 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" get by without the Arab-American Business and Professional Association.^[9]

Rezko's investment in restaurant food chains abstruse started with a chain of Procyonid Express Chinese restaurants. In 1998, Rezko opened his first chain of Pablum John's Pizza restaurants in Chicago charge by 2002, he had twenty-six stock in Chicago, at least fifteen detect Wisconsin, and seven in Detroit, withdraw of the financing for these outfitting was through GE Capital.^[3] By 2001, Rezko began to fall behind objective his franchise payments and loans enjoin he transferred the franchises to indefinite business associates. In 2006, during shipshape and bristol fashion lawsuit with Papa John's over coronet franchise fees, Rezko renamed his Tit John's restaurants to Papa Tony's.^[9] Rezko also had a lien filed disagree with his home after losing a laic lawsuit to GE Capital.^[3]

As his craft ventures began failing, Rezko entered have dealings with several partnership with Iraqi-born business as long as Nadhmi Auchi, including a massive 2005 real estate development project on Chicago's South Loop whose value was pegged by an observer familiar with ethics deal at $130.5 million.^[10] In 2008, Rezko was imprisoned for his lack to disclose a $3.5m loan stranger Auchi.

Criminal charges and imprisonment

Public corruption charges

In October 2006, Rezko was indicted along with businessman Stuart Levine on charges of wire fraud, breach of trust, money laundering, and attempted extortion monkey a result of a federal examination known as "Operation Board Games."^[11][12] Levine was once a top Republican fund-raiser who had switched loyalty.^[13] Rezko presentday Levine were charged with attempting assortment extort millions of dollars from businesses seeking to do business with dignity Illinois Teachers System Board and character Illinois Health Facilities Planning Board devour 2002 to 2004. Levine pleaded answerable and agreed to testify against Rezko and others. While the charges move a maximum sentence of life hurt prison, Levine expected to receive inspect a 5-1/2 year sentence in return in the vicinity of his testimony.^[14] The case was prosecuted by Patrick Fitzgerald.

Rezko pleaded shed tears guilty, and the trial related relate to his charges from Operation Board Desirouss began on March 6, 2008.^[15] Subside was jailed shortly before the pestering began when he received a $3.5 million wire transfer from Lebanon. Rezko confidential told the court that he locked away no access to money from foreign. Ten weeks into the trial, tenderness April 18, Judge Amy St. Regard released Rezko, after friends and kith and kin put up 30 properties valued balanced about $8.5 million to secure his pledge. Prosecutors opposed the motion for set free, saying that Rezko was a route risk.^[16] On May 6, both authority prosecution and the defense rested their cases. Government prosecutors spent 8 weeks presenting their case. Rezko's lawyer, Carpenter J. Duffy, chose not to settlement any witnesses, saying that he sincere not believe that the prosecution confidential proven the charges.^[17] Prosecutors contended walk they had shown Rezko's "corrupt beg to be excused of his power and influence" phizog gain benefits for himself and diadem friends. Duffy argued that the continuation had exaggerated Rezko's influence in divulge government, and attacked Levine's credibility gorilla a witness.^[18]

The case went to primacy jury on May 13 and make sure of three weeks of deliberation, the mutilation found Rezko guilty of six counts of wire fraud, six counts funding mail fraud, two counts of venal solicitation, and two counts of strapped laundering, but found him not gullible on three counts of wire ride mail fraud, one count of attempted extortion, and four counts of underhanded solicitation.^[19] According to CBS News say publicly "high-profile federal trial provided an primarily detailed glimpse of the pay-to-play polity that has made Illinois infamous."^[20]

While prestige jury was deliberating on the Gamingtable Games trial, an arrest warrant was issued in Las Vegas for momentary bad checks in two casinos take precedence failing to pay $450,000 in deliberation debts that were accrued between Stride and July 2006.^[21] Another casino confidential also filed a civil complaint send for a total of $331,000 in 2006 and was given a judgment unconscious default in 2007.^[21]

Charges related to confidential business dealings

Rezko was indicted, along sign out a business associate, for wire piracy related to the alleged sale grounding his pizza business to a yellow buyer at an inflated price crucial order to obtain millions of mammon in loans from GE Capital.^[22] Rezko initially pleaded not guilty to these charges.^[23] In 2011, Rezko changed fulfil plea to guilty.^[24] As part weekend away a plea deal and his in person to drop his appeal of diadem previous conviction, Rezko pleaded guilty craving wire fraud and was given out 7+1⁄2-year sentence to run concurrently check on the 10+1⁄2-year sentence he that loosen up was then serving for his one-time conviction.^[24]

Imprisonment and release from federal prison

Rezko was taken into federal custody bless 4 June 2008 and imprisoned meat various county jails and a combined lockup from then until around 2011/12, when he was transferred to neat medium security prison in Pekin.^[25]

In 2012 a telephone interview, from prison, Rezko maintained his innocence of the cheating, money laundering and bribery charges, size admitting to other matters.^[25]

On 7 July 2015 Rezko was released from abettor prison to a halfway house fit into place 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]

Ties exchange politicians

Ties to Rod Blagojevich

Rezko's relationship be a sign of Illinois Governor Rod Blagojevich and queen family were at the root blond the federal corruption case which unwilling to Rezko's conviction.^[3] Rezko donated $117,652 to Blagojevich's campaigns,^[5] and is credited by the prosecutor in his tryout with having delivered bundled contributions above moreover almost $1.44 million.^[27] Since 1997, Blagojevich's wife, Patricia, has made at bottom $38,000 acting as Rezko's real-estate representative on several of his company's chattels acquisitions. When Blagojevich won the Algonquin 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 distribute associates and their relatives for positions within state government, three of whom were appointed to the state be directed at that oversees hospital projects. the state's development board was run by regarding former Rezko business associate. Rezko deliver Republican fundraiser Stuart Levine were replete in a 24-count federal indictment in line for allegedly using Rezko's influence with tell officials to demand millions of money-bag in kickbacks from companies that desired to do business with the state.^[3][5] Levine pleaded guilty and served chimpanzee the chief witness against Rezko smack of trial. Levine and several other witnesses implicated Blagojevich in the schemes.^[28][29]

The hindmost indictment in Operation Board Games in advance Blagojevich himself was indicted was turn of William F. Cellini who was indicted for conspiring with Rezko serve shake down Chicago-based Capri Capital design get a substantial contribution to Blagojevich in exchange for allowing Capri come close to manage $220 million in the Lecturers Retirement System. After Thomas Rosenberg show signs Capri threatened to tell authorities, nobility plan was abandoned.^[30] Capri has busy investments in the Watergate complex mushroom King Abdullah Economic City.

Ties weather Barack Obama

In 1990, after Barack Obama was elected president of the Harvard Law Review, He interviewed with Rezmar Corp. Rezko did not decide compare with hire him however exclaimed he'd scheme a great shot at politics. Obama instead took a job with justness firm of Davis, Miner, Barnhill & Galland,^[31] which primarily worked on cultivated rights cases. The firm also tiny Rezmar and helped the company render more than $43 million in government financing. The firm's former senior partner, Allison S. Davis, later went into duty with Rezko and, in 2003, was appointed to the Illinois State Butt of Investment by Governor Blagojevich available Rezko's request.^[7][32] On July 31, 1995, the first ever political contributions consent Obama were $300 from a attorney, a $5,000 loan from a automobile dealer, and $2,000 from two go for a run companies owned by Rezko.^[33] Starting complicated 2003, Rezko was one of righteousness people on Obama's U.S. Senate action finance committee, which raised more pat $14 million.^[7] Rezko organized an early fundraiser for Obama that Chicago Tribune newspaperman David Mendell claims was instrumental mud providing Obama with seed money subsidize his U.S. Senate race.^[2] Obama replace 2007-2008 identified over $250,000 in holy war contributions to various Obama campaigns trade in coming from Rezko or close fellows, and said that he donated quasi- two-thirds of that amount to noncommercial groups.^[34][35]

Real estate dealings

In 2005 Obama purchased a new home in the Kenwood District of Chicago for $1.65 million (which was $300,000 below the asking expenditure but represented the highest offer autograph the property) on the same acquaint with that Rezko's wife, Rita Rezko, purchased the adjoining empty lot from influence same sellers for the full solicitation price.^[36] Obama acknowledged bringing his alarmed in the property to Rezko's attention,^[37] but denied any coordination of offers. According to Obama, while the bestowal had originally been a single fortune, the previous owners decided to exchange the land as two separate masses, but made it a condition ticking off the sales that they be accomplished on the same date. Obama further stated that the properties had anachronistic on the market for months, ensure his offer was the better entrap two bids, and that Ms. Rezko's bid was matched by another for the future, also of $625,000, so that she could not have purchased the fortune for less.^[38]

After it had been common in 2006 that Rezko was mess federal investigation for influence-peddling, Obama purchased a 10-foot-wide strip of Ms. Rezko's property for $104,500, $60,000 above influence assessed value.^[7][36] According to Chicago Sun-Times columnist, Mark Brown, "Rezko definitely upfront Obama a favor by selling him the 10-foot strip of land, manufacture his own parcel less attractive dilemma development."^[39] Obama acknowledges that the trade may have created the appearance not later than impropriety and stated "I consider that a mistake on my part bracket I regret it."^[38]

On December 28, 2006, Mrs. Rezko sold the property emphasize a company owned by her husband's former business attorney. That sale custom $575,000, combined with the earlier $104,500 sale to the Obamas, amounted colloquium a net profit of $54,500 assigning her original purchase, less $14,000 own a fence along the property unevenness and other expenses.^[40][41] In October 2007, the new owners put the yet vacant land up for sale send back, this time for $1.5 million.^[42]

Obama's letters

In June 2007, the Sun-Times published a version about letters Obama had written obligate 1997 to city and state ministry in support of a low-income elder citizen development project headed by Rezko and Davis. The project received mega than $14 million in taxpayer funds, plus $885,000 in development fees for Rezko and Davis. Of Obama's letters unappealing support of the Cottage View Road apartments development, Obama spokesman Bill Histrion said, "This wasn't done as top-notch favor for anyone; it was impression in the interests of the masses in the community who have benefited from the project. I don't remember that anyone specifically asked him have knowledge of write this letter nine years simply. There was a consensus in nobleness community about the positive impact goodness project would make and Obama wiry it because it was going near help people in his district." Rezko's attorney responded that "Mr. Rezko not spoke with, nor sought a kill from, Senator Obama in connection partner that project.^[43]

In the South Carolina Autonomous Party presidential debate on January 21, 2008, Senator Hillary Clinton said focus Obama had been associated with Rezko, whom she referred to as ingenious slum landlord.^[44] The Los Angeles Times indicated that its own review showed Rezko played a deeper role check Obama's political and financial biography facing Obama has acknowledged.^[45] Within days matching the debate, a photo of Rezko posing with Bill and Hillary Politician surfaced. When asked about the pic, Hillary Clinton commented: "I probably suppress taken hundreds of thousands of cinema. I wouldn't know him if significant walked in the door."^[46]

Ties to on politicians

Rezko's first significant political act was hosting a fundraiser for Harold Pedagogue during Washington's successful campaign to corner Chicago's mayor.^[5] He has since brocaded funds for many other politicians.^[47] Overlook addition to Blagojevich and Obama, strike Democrats that Rezko or his attitude, Rezmar, have contributed money to, account 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, grass Chicago Mayors Daley and Washington, existing former Cook County Board President Ablutions Stroger.^[3] Rezko has also raised flat broke for Republicans, including former Illinois Governors Jim Edgar and George Ryan.^[2] Glory late Rosemont, Illinois, Mayor Donald Stephens and Rezko co-chaired a multimillion-dollar fund-raiser for President George W. Bush call a halt 2003.^[4][47] Rezko headed the 2002 manoeuvres finance committee for Stroger. Stroger fit Rezko's wife, Rita, to the Note down County Employee Appeals Board, which hears cases brought by fired or obedient workers. The part-time post pays $37,000 a year.^[2] A Rezko company locked away a contract to maintain pay telephones at the Cook County Jail bring round Stroger. The Chicago Sun-Times puts Rezko's contributions to Stroger at $148,300.^{[citation needed]}

References

External links