Obama gives away money tied to donor

[Ron Burgundy]

AP - Barack Obama is giving to charity more than $70,000 in contributions linked to an indicted Chicago businessman whose past connections to the Democratic presidential candidate have created a distraction and raised questions about his judgment.

The campaign announced the decision to shed the money Tuesday evening, saying it was the result of a further review of contributions related to Antoin Rezko, a real estate developer and fast-food magnate who has been a long time political figure in Chicago, Obama's hometown.

Overall, the campaign has now given to charity nearly $150,000 in contributions received by Obama's House, Senate and presidential campaigns that came from Rezko, his employees, his associates and his family.

Obama's relationship with Rezko came under greater scrutiny this week after prosecutors disclosed Rezko received $3.5 million from an Iraqi billionaire while claiming to be broke. He was jailed on Monday and a federal judge on Tuesday refused to reinstate his bond.

The campaign's timing for its announcement seemed designed to avoid major news coverage. It came as political attention was focused on Tuesday's Republican presidential contest in Florida. Earlier this month, the campaign announced it would give more than $40,000 to charity on the same day as the Republican primary in South Carolina and the Nevada caucuses.

The charitable contribution announced Tuesday came after Obama ordered a more detailed review of contributions related to Rezko, Obama spokesman Bill Burton said. The money covered contributions from Rezko family members and employees and from others who may have given to Obama's 2004 Senate campaign.

"By refunding these donations, the campaign has returned any and all funds that could be reasonably credited to Mr. Rezko's political support," Burton said.

Rezko has been a patron of Illinois politicians for years and Obama's connections to Rezko go back more than 15 years. Rezko has contributed thousands of dollars to the campaigns of both Obama and Gov. Rod Blagojevich. Neither has been accused of any wrongdoing.

Besides the contributions, Obama has fielded questions about Rezko's role in a June 2006 real estate deal involving Obama's home on the South Side of Chicago. On the same day the Obama's purchased the house, Rezko's wife bought an adjoining lot. Obama has said that the sellers had required that both of the lots had to be sold simultaneously. He has called the arrangement a "boneheaded" mistake, but has said Rezko was not doing him a favor.

Prosecutors have charged Rezko with fraud, attempted extortion and money laundering in what they allege was a scheme to get campaign money and payoffs from firms seeking to do business before two state boards.

source: http://news.yahoo.com/s/ap/20080130/ap_on_el_pr/obama_rezko_money [link]