One-time Obama fundraiser guilty in corruption trial

By Andrew Stern

CHICAGO (Reuters) - A day after Barack Obama claimed the Democratic party's presidential nomination, his one-time fundraiser was found guilty of corruption on Wednesday, a development the Republican party said raises serious concerns about his fitness for the White house.

Antoin "Tony" Rezko, a Chicago real estate developer and one-time fundraiser for several politicians including Obama, was found guilty of fraud, attempted bribery and money laundering.

Obama figured only briefly in the trial and had severed his connections with Rezko. But the Republican National Committee immediately issued a statement noting the verdict came right after Obama came "wheezing over the finish line" to beat party rival Hillary Clinton.

"This is further proof that Obama's high-flying rhetoric is just that ... today's verdict and Obama's friendship with Rezko raise serious questions about whether he has the judgment to serve as president," it said.

A federal jury convicted Rezko of 16 of 24 counts against him for using his influence over two Illinois government boards to extort millions of dollars in bribes and campaign donations. The 52-year-old will be sentenced in early September, about two months before the general election.

"I'm saddened by today's verdict," Obama said in a statement issued by his campaign. "This isn't the Tony Rezko I knew, but now he has been convicted by a jury on multiple charges that once again shine a spotlight on the need for reform. I encourage the General Assembly to take whatever steps are necessary to prevent these kinds of abuses in the future."

Obama's name came up peripherally during the two-month trial as a recipient of campaign donations generated by Rezko for his U.S. Senate race in 2004.

The Syrian-born property developer and restaurant entrepreneur was a close friend of Obama's and their ties created some sparks in the primary contest. Rezko's role could resurface in the general election fight against Republican Sen. John McCain as Obama seeks to become the first black U.S. president.

'SLUM LANDLORD BUSINESS'

Democratic rival Sen. Hillary Clinton accused Obama in a January debate of doing legal work for Rezko's "slum landlord business in inner city Chicago."

Critics said Obama's links with Chicago powerbrokers, including Rezko, and ties to Rev. Jeremiah Wright, his fiery former pastor, raised questions about his judgment and credibility as he advocates politics free from influence.

Rezko was found guilty of 12 counts of mail and wire fraud, two of attempted bribery and two of money laundering. The jury found him not guilty of three counts of wire fraud, one of attempted extortion and four of attempted bribery.

Prosecutors focused on Rezko's corrupting influence in the administration of Illinois' Democratic Gov. Rod Blagojevich, eliciting testimony that Rezko demanded campaign contributions and bribes in exchange for jobs or contracts. The defense presented no witnesses.

Some of those suspect contributions went for Obama's senate run; his presidential campaign has given away some $250,000 in donations it can trace to Rezko.

In March, Obama sought to clear the air and answer criticism he was not being forthcoming about Rezko by agreeing to answer all questions from Chicago newspaper reporters. The interviews revealed a close relationship in which the two discussed strategy daily and socialized with their families.