In a January 23 Los Angeles Times article, staff writers Dan Morain and Tom Hamburger reported that Sen. Barack Obama (D-IL) has “sought to minimize the nature” of his relationship to indicted Chicago fundraiser Antoin Rezko, writing: “A review by the Los Angeles Times shows that Rezko, a businessman long active in Chicago politics, played a deeper role in Obama's political and financial biography than the candidate has acknowledged.” However, as evidence of the “deeper role” Rezko allegedly played in “Obama's political and financial biography” that Obama has not “acknowledged,” the Times cited a property deal between Obama and Rezko that has long been a matter of public record, and which Obama has already “acknowledged” -- indeed, the article itself noted that Obama called it a “mistake.”

Additionally, the Times reported:

Obama has said repeatedly that he did nothing in exchange for Rezko's early and consistent support.

But in 1998, then-state Sen. Obama wrote to state and city officials urging them to provide funding for New Kenwood LLC, a company formed by Rezko and Allison Davis. Obama wrote the letters, first reported by the Chicago Sun-Times, on Illinois Senate stationery, saying: “This project will provide much needed housing for 4th Ward citizens.”

The Times offered no evidence that the letters Obama wrote supporting New Kenwood's housing project were written “in exchange for Rezko's early and consistent support,” nor did the article note that Obama and Rezko have already addressed the letters and denied that they constituted a “favor” to Rezko. The June 13, 2007, Chicago Sun-Times report cited in the article quoted an Obama campaign spokesman stating that the letters were not “done as a favor for anyone,” and Rezko's attorney saying: “Mr. Rezko never spoke with, nor sought a letter from, Senator Obama in connection with that project.” Additionally, the Chicago Tribune -- which, along with the Los Angeles Times, is published by the Tribune Company -- reported on January 23 that Obama “was one of several political and community leaders who pushed for funding for the project.”

From the January 23 Los Angeles Times article:

Antoin “Tony” Rezko, an entrepreneur who made a fortune in pizza parlors, Chinese restaurants and real estate, goes on trial next month on federal charges of extortion, influence peddling and conspiracy. There is no suggestion that Obama is involved in any of the alleged criminal activity. But the upcoming trial -- and details of Obama's relationship with its central figure -- could cast a shadow over his carefully cultivated image at a critical time.

In recent weeks, including during the debate, Obama sought to minimize the nature of that relationship. Among other things, he has returned $85,000 in Rezko-related campaign contributions in what a staffer calls “an abundance of caution.”

A review by the Los Angeles Times shows that Rezko, a businessman long active in Chicago politics, played a deeper role in Obama's political and financial biography than the candidate has acknowledged.

For example, Rezko, his employees and business associates -- such as his consultants, lawyers and their families -- have provided Obama more than $200,000 in donations since 1995, helping fuel his rapid ascent in Illinois and U.S. politics. Although Rezko is not Obama's largest bundler, he was there at the start and at critical moments along the way, helping support the candidate when few others were.

In addition to being a campaign benefactor, Rezko also surfaced when Obama and his wife purchased their house on Chicago's South Side in 2005. On the day the Obamas bought their house, Rezko's wife, Rita, bought an adjacent lot from the same sellers, part of which Obama later bought back.

Rita Rezko's purchase, at the $625,000 asking price, came just as the Obamas successfully bid in a slow market to buy the house for $300,000 below the asking price, according to the Chicago Tribune.

The Obamas secured their brick Georgian Revival-style home on June 15, 2005, for $1,650,000. Later, the Chicago Tribune reported, Rezko paid $14,000 to build a fence, required by city ordinance, along the new property line.

Obama says there was nothing improper in these transactions. The housing deal came after it was known that Rezko was under scrutiny by federal authorities.

Obama has said that, in retrospect, the property deal was a “mistake” because of the appearance it created.

Several news outlets have reported that there is no evidence of any wrongdoing on Obama's part regarding the real estate deal with Rezko. The Obama/Rezko land deal was first reported by the Chicago Tribune in November 2006, and Obama addressed the issue in an interview with the Chicago Sun-Times, published on November 5, 2006, saying: “I consider this a mistake on my part and I regret it.”

The January 23 Los Angeles Times article continued:

The criminal case against Rezko appears to center in part on his efforts to provide contributions to Illinois Democratic Gov. Rod R. Blagojevich in exchange for appointments to state boards and commissions. The federal investigation, dubbed Operation Board Game, produced allegations that Rezko and others sought to squeeze kickbacks from firms doing business before state boards. One oversees public schoolteacher pension investments. Another authorizes permits for hospitals.

Just a few years ago, Rezko was hobnobbing with the emir of Qatar, squiring him to Springfield and Chicago. He sold to a British billionaire -- but still helps manage -- what would be the largest undeveloped swath of land left in downtown Chicago, 62 acres along the Chicago River. He even became partners in a planned power plant in Iraq.

Obama has said repeatedly that he did nothing in exchange for Rezko's early and consistent support.

But in 1998, then-state Sen. Obama wrote to state and city officials urging them to provide funding for New Kenwood LLC, a company formed by Rezko and Allison Davis. Obama wrote the letters, first reported by the Chicago Sun-Times, on Illinois Senate stationery, saying: “This project will provide much needed housing for 4th Ward citizens.”

Some who were part of Rezko's world remain Obama backers.

The Sun-Times reported on June 13, 2007:

On Tuesday, Bill Burton, press secretary for Obama's presidential campaign, said the letters Obama wrote in support of the development weren't intended as a favor to Rezko or Davis.

“This wasn't done as a favor for anyone,” Burton said in a written statement. “It was done in the interests of the people in the community who have benefited from the project.

”I don't know that anyone specifically asked him to write this letter nine years ago," the statement said. “There was a consensus in the community about the positive impact the project would make and Obama supported it because it was going to help people in his district. ... They had a wellness clinic and adult day-care services, as well as a series of social services for residents. It's a successful project. It's meant a lot to the community, and he's proud to have supported it.''

The development, called the Cottage View Terrace apartments, opened five years ago at 4801 S. Cottage Grove, providing 97 apartments for low-income senior citizens.

Asked about the Obama letters, Rezko's attorney, Joseph Duffy, said Tuesday, ”Mr. Rezko never spoke with, nor sought a letter from, Senator Obama in connection with that project."

The Chicago Tribune reported on January 23:

As a state senator in 1998, Obama wrote two letters to city and state officials to support a Rezko/Davis senior housing project in his district that received more than $14 million in taxpayer money and netted $885,000 in fees for the two developers.

He was one of several political and community leaders who pushed for funding for the project. Among those sending similar letters of support were Ald. Toni Preckwinkle (4th), then-state Rep. Lou Jones (D-Chicago) and Robert Grossman, head of the Hyde Park-Kenwood Conservation Community Council.

Obama press secretary Bill Burton said Rezko never asked Obama to send a letter having anything to do with that project. And Rezko's attorney, Joseph Duffy, said Rezko “never spoke with, nor sought a letter from, Sen. Obama in connection with that project.”