Barack Obama: a Radical Leftist’S Journey from Community Organizing to Politics by Elias Crim and Matthew Vadum
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Barack Obama: A Radical Leftist’s Journey from Community Organizing to Politics By Elias Crim and Matthew Vadum Summary: The remarkable ascent of Demo- cratic presidential candidate Barack Obama begins with his career as a “community organizer” for far-left causes in Chicago, an experience that served as a launching pad for his political career. Along with way, Obama acquired some unsavory friends including sleazy political fundraiser Tony Rezko and unrepentant Pentagon bomber William Ayers. Obama promises to carry his activist spirit into national politics, but does he also carry the smell of Chicago politics into the national arena? “What Obama is proposing goes far beyond the boundaries of traditional community service volunteers. Obama wants to bring the spirit and tactics of community organiz- ing into the political system, and there is no road map out there for how to do it.” —John K. Wilson, Barack Obama, The Improbable WhenWhen you’reyou’’re runningrunniing ffoforr prpresident,esidentt, iit’st’s hhahardrdd ttoo outrun your past. Shown in old mug- Quest (2008) shots, unrepentant terrorist William Ayers (above center), and his wife, Bernadine Dohrn (right), helped launch Barack Obama’s political career by holding a 1995 fund- raiser in their Hyde Park home. The event came years after the couple detonated he Chicago winter of 1996-1997 was bombs in the Pentagon, the U.S. Capitol, and New York City police headquarters. a bad one, especially for residents of Chicago’s inner-city neighborhoods. But he Foundation, an Islamic charity founded in Tthe Englewood apartment building at branched out into politics in the early 1980s 1975 that in 1985 changed its name from 7000-10 South Sangamon. The 31-unit build- when he met Jabir Herbert Muhammad, the Elijah Muhammad Foundation when ing had been rehabilitated with a $653,500 the former manager of retired heavyweight the champ lent it his name. Rezko was also loan from the city of Chicago’s low-income champion Muhammad Ali and son of Na- the actual owner of fast-food franchises that housing fund, another $654,000 in bank fi - tion of Islam founder Elijah Muhammad. Jabir Mohammed told city offi cials were his. nancing, and $1.9 million in tax credits. The Jabir Muhammad asked Rezko to donate to general partner on the project was Rezmar mayoral candidate Harold Washington, an June 2008 Corporation, run by Antoin (“Tony”) Rezko African-American challenging Chicago’s and Daniel Mahru. But the tenants shivered white establishment. After Washington was CONTENTS for over fi ve weeks without heat because elected mayor, Rezko, an Arab Christian who Barack Obama Rezko and Mahru claimed they lacked the emigrated from Syria to Chicago in 1971, be- Page 1 cash to turn the heat back on again. came increasingly involved in causes linking his business interests to the political clout of Philanthropy Notes Rezko was a successful real estate in- Chicago’s black community. For several years Page 12 vestor who owned fast-food restaurants in he was even chairman of the Muhammad Ali FoundationWatch According to the Chicago Tribune (March 16, 2005), in the late 1990s Jabir Moham- med was the front man who allowed Rezko to secure city contracts using Chicago’s minority set-aside program. Harold Washington died in 1987 and in 1989, the year Richard M. Daley was elected to the fi rst of six (so far) terms as mayor of Chicago, Rezko and Mahru formed Rezmar Corp., promising to build more low-income housing in Chicago. Rezmar became the Daley administration’s favored low-income housing developer. Rezko’s timing was good: During these years many neighborhoods on the South Side were undergoing gentrifi ca- tion, and the prospect of rising real estate values attracted a fl ock of developers with wallets open to make whatever campaign contributions might be necessary in order to get business done. The South Sangamon building was one of Barack Obama endorsed Chicago Mayor Richard M. Daley (right) for a sixth term in 30 low-income projects—containing a total January 2007. Daley later returned the favor, endorsing Obama for president. of 1,025 apartments—that Rezko took on experience when they created Rezmar, but for Rosenberg’s asset management fi rm and between 1989 and 1998. In all, Rezmar Corp. they became experts at working Chicago’s was told that Rosenberg needed to pay Rezko collected more than $100 million by arrang- political system to acquire taxpayer subsidies a $2 million kick-back or raise $1.5 million ing “public-private partnerships” with the for their redevelopment schemes. for the re-election campaign of Illinois Gov- city, the state and federal governments, and ernor Rod Blagojevich, a Democrat. At press in bank loans to rehab South Side buildings Rezko and Mahru also managed the time, the trial, which ended on May 5, had intended as low-income housing. Neither buildings. Not surprisingly, every one of the gone to the jury for deliberation. Rezko did Rezko nor his partner had any construction projects ran into fi nancial diffi culties within not testify and made no defense, his lawyers six years, according to a Chicago Sun-Times arguing that the prosecution failed to meet Editor: Matthew Vadum investigation, and more than half went into its burden of proof. Publisher: Terrence Scanlon foreclosure. Chicago sued Rezmar on at least a dozen occasions. “Their buildings were Ensnared in Chicago Politics Foundation Watch falling apart,” a former city offi cial told the The sleazy tale of Tony Rezko —corrupt is published by Capital Research Sun-Times. “They just didn’t pay attention businessman and political fundraiser— is Center, a non-partisan education and to the condition of these buildings.” hardly unique in Chicago. What makes the research organization, classifi ed by story noteworthy is that it touches Demo- the IRS as a 501(c)(3) public charity. To arrange project fi nancing Rezko fre- cratic presidential candidate Barack Obama Address: quently relied on a small Chicago law fi rm, who has promised to move America away 1513 16th Street, N.W. Davis Miner Branhill & Galland, whose top from politics as usual. Obama now admits Washington, DC 20036-1480 partner, Allison S. Davis, was a Rezko associ- that becoming involved with Rezko when ate and Daley administration insider. he purchased a new home in January 2005 Phone: (202) 483-6900 Long-Distance: (800) 459-3950 following his election to the U.S. Senate the Davis’s name recently surfaced in previous November was a “bone-headed E-mail Address: Rezko’s trial for money-laundering, fraud, mistake.” The terms of that involvement [email protected] bribery, and extortion. Witnesses say he was have received widespread publicity: Senator- the go-between in one of the alleged crimes: elect Obama and Rezko toured the property Web Site: http://www.capitalresearch.org an attempted pay-to-play shakedown of together when it was already known that Chicago businessman Tom Rosenberg whose Rezko was under criminal investigation. Organization Trends welcomes let- fi rm managed $1 billion for the Illinois Teach- Obama and his wife Michelle subsequently ters to the editor. ers Retirement Association, a $40 billion paid the seller $1.65 million for their new Reprints are available for $2.50 pre- pension fund. In early 2004 Davis allegedly home, $300,000 below the asking price. On paid to Capital Research Center. approached Rezko about how to secure an the same day Mrs. Rita Rezko paid the same additional $220 million pension allocation seller the asking price of $625,000 for the 2 June 2008 FoundationWatch adjoining 9,000-square-foot lot. In January associates have donated at least $168,000 to who does not sell voters short but 2006, Mrs. Rezko sold a 10 foot-by-150 foot Obama’s campaigns, three times more than who educates them about the real strip of the lot to the Obamas for $104,500, what Obama has acknowledged. choices before them? As an elected and in December she sold the remainder of public offi cial, for instance, I could the property to her husband’s lawyer for Sun-Times research also found that 11 bring church and community lead- $575,000. Rezko buildings were located in Obama’s ers together easier than I could as a district during the years when he was an Il- community organizer or lawyer… Obama’s previous connections with linois state senator (1997-2004). Would the We must form grass-roots structures Rezko have received less attention, but they residents of these apartment buildings have that would hold me and other elected will invite further scrutiny during the elec- voted to elect the idealistic young Obama to offi cials more accountable for their tion season and as Rezko’s legal troubles the state senate had they known of his ties actions.” play out. During that bad winter 11 years ago when Those words must Rezmar couldn’t afford ring hollow to the to turn on its tenants’ Rezko tenants. heat, Obama was a third- Obama’s staff says year associate at Allison he was unaware of Davis’s law fi rm, which Rezmar Corp.’s fail- represented Rezmar. A ings, which they say standard Rezmar prac- would more appro- tice was to team up with priately be handled nonprofi t groups that were by a local alderman. clients of the Davis fi rm The irony here is that to secure government and Obama understood private funding for low- that grassroots or- income housing projects. ganizers could not The groups included the succeed unless they Chicago Urban League, had political allies the Woodlawn Preserva- in power. And it’s tion and Investment Corp.