Friday, June 08, 2007

Obama donates more Rezko tainted donations to charity

Barack Obama's continuing headache--indicted political insider Tony Rezko--flared up again today. The campaign is donating to charities money from two men with ties to the Democratic fundraiser.

From AP:

The Chicago Tribune reports in its Friday editions that the Illinois senator is giving to charity the donations from entrepreneur Joseph Aramanda and Dr. Paul Ray, the chairman of the urology department division of Cook County's Stroger Hospital.

Aramanda, who has overseen Rezko pizza franchises, gave at least $10,000 to Obama's 2004 campaign, the Tribune reported. Ray has invested in a Rezko real estate development firm; he gave $6,500 to Obama.

Obama spokesman Bill Burton told the Tribune that it isn't clear how the donations came about.

The men aren't accused of any wrongdoing. Their attorneys declined to comment to the Tribune.

Here is the Tribune story, but free registration is required to access it.

In the October 2005 indictment of Rezko, Joseph Aramanda was not identified by name, but as "Individual D."

Rezko's pizza franchises have a troubled history, originally they were Papa John's outlets, but Rezko lost his franchise flag and renamed them Papa Tony's.

Dr. Paul Ray has an interesting background. This comes from the Tribune:

Ray, who earns nearly $347,000 as chairman of Stroger Hospital's urology division, also has partnered with Rezko in several ventures.

(My note: Stroger Hospital, most people refer to it by its old name, Cook County Hospital, is a publicly funded health care facility, Ray is an employee of Cook County.)

One civil lawsuit over Rezko's companies contains corporate documents that say Ray personally invested about $1 million in Rezko Enterprises LLC, giving Ray a 2.6 percent stake in that property development firm.

And Ray heads a tax-exempt nonprofit called Urology Education and Research Foundation Inc. that has invested $600,000 in Rezko real estate and business enterprises, according to the charity's 2004 public tax filings. The foundation took donations from pharmaceutical companies to study the efficacy and safety of drugs. Thomas Anthony Durkin, a criminal defense attorney who represents Ray, declined to comment on any pending court cases but said. "I am quite confident that Paul Ray has done nothing wrong whatsoever."

Records and interviews show that Ray is the unidentified "Investor 1" in court filings last week that allege Rezko engaged in a scheme to defraud a lending company of more than $10 million. Prosecutors allege that Investor 1 entered into a 2004 purchase of 15 Wisconsin pizza parlors that were formerly owned by a Rezko firm. In an effort to obtain financing for that purchase, Ata wrote a letter to a lending company saying the state would guarantee a portion of a loan, according to the indictment.

It's very interesting that that the state of Illinois would be so interested in Wisconsin pizza restaurants. Oh, I forgot, Tony Rezko was involved!

Mr. Ata, who is mentioned in the final Tribune paragraph, is Ali D. Ata, former head of the Illinois Finance Authority. He was indicted last week, and Obama's campaign directed its Ata-donated monies to charity shortly after the indictment was announced.

Aramanda's son served as an Obama intern in Washington two years ago.

Last fall, Obama gave over $10,000 in Rezko donations to charity.

Obama is in Chicago today for four fundraisers, as you'll read in the below post.

Will he use a side door to each shindig and avoid Chicago reporters? With a couple of exceptions, the local media is not smitten with "Obama mania." Four years ago, he was a nobody-state senator.

Related posts:

Obama gives up donation from man with Rezko ties

More problems for Obama: Senator hired intern with ties to Tony Rezko

The drip...drip...drip...of Tony Rezko

Obama cuts and runs after foreign affairs speech

Thanks for the link: Rogers Park Bench

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