Tony Rezko facts for kids

Antoin "Tony" Rezko (born 1955) is an American businessman. He became well-known for raising money for politicians in Illinois. Later, he was found guilty of using his connections to try and get unfair deals from businesses.

Rezko helped Rod Blagojevich become governor of Illinois. After Blagojevich won, Rezko helped him set up the new government. This allowed Rezko to suggest his business friends for important positions on state boards. In 2006, Rezko and others were accused of using these connections to ask for money from companies that wanted to work with the state. Rezko said he was innocent and went to trial. He was found guilty of many charges and was sentenced to prison in 2011.

Early Life and Education

Tony Rezko was born in 1955 in Aleppo, Syria. He came from an important family. After finishing college in Syria, Rezko moved to Chicago. He studied civil engineering at the Illinois Institute of Technology in the late 1970s.

He first worked as an engineer, designing nuclear power plants. Later, he designed highways for the Illinois Department of Transportation.

Rezko's Business Ventures

While working as an engineer, Rezko started buying empty land. He built homes on these lots. He also began investing in fast-food restaurants, including the first Subway in Chicago. Many of his properties were in neighborhoods with lower incomes. There, he met Jabir Herbert (J.H.) Muhammad, who was the manager for boxing champion Muhammad Ali.

In 1983, Rezko was asked to support Harold Washington's campaign for mayor of Chicago. Washington became the first African-American mayor of the city. In 1984, J.H. Muhammad's company, Crucial Concessions, hired Rezko. This company won a contract to sell food on Lake Michigan beaches and in many parks in Chicago South Side. Rezko also helped arrange endorsement deals for Muhammad Ali. He became the leader of the Muhammad Ali Foundation and traveled with Ali for five years.

In 1997, Crucial Concessions opened two Panda Express restaurants at O'Hare Airport. These were part of a program to help businesses owned by minorities. The company lost these restaurants in 2005. This happened because people believed J.H. Muhammad was just a front for Rezko.

In 1989, Rezko and Daniel Mahru started a real estate and restaurant company called Rezmar Corporation. Between 1989 and 1998, Rezmar fixed up many buildings, creating over 1,000 apartments. They used more than $100 million from the government and banks. Rezmar also got paid fees for developing these projects. By 1998, the company was worth a lot of money. They then started buying old factories and land in areas of Chicago that were becoming popular. They turned these into fancy apartment buildings. Rezko was even named "Entrepreneur of the Decade" by a business group.

Rezko also invested in restaurant chains like Panda Express. In 1998, he opened his first Papa John's Pizza restaurants in Chicago. By 2002, he had many stores in Chicago, Wisconsin, and Detroit. Some of the money for these stores came from GE Capital. By 2001, Rezko started having trouble paying his franchise fees and loans. He transferred his restaurants to other business partners. In 2006, during a legal dispute with Papa John's, Rezko changed the name of his Papa John's restaurants to Papa Tony's.

As his businesses faced problems, Rezko partnered with Iraqi businessman Nadhmi Auchi. They worked on a large real estate project in Chicago in 2005.

Connections with Politicians

Rezko was known for his connections to many politicians. He helped raise money for their campaigns.

Working with Rod Blagojevich

Rezko's close relationship with Illinois Governor Rod Blagojevich was a key part of the federal case against Rezko. Rezko gave a lot of money to Blagojevich's campaigns. Prosecutors said he helped gather almost $1.44 million in donations. Blagojevich's wife, Patricia, also earned money as Rezko's real estate agent.

When Blagojevich won the election for governor in 2002, Rezko helped him set up the new government. Rezko suggested many of his business partners and their family members for jobs in the state government. Some of these people were appointed to important state boards.

Rezko and another fundraiser, Stuart Levine, were accused of using Rezko's influence to demand money from companies. These companies wanted to do business with the state. Levine pleaded guilty and became a main witness against Rezko in court. Levine and other witnesses also mentioned Blagojevich in these plans.

Working with Barack Obama

In 1990, after Barack Obama became president of the Harvard Law Review, he interviewed with Rezmar Corp. Rezko did not hire him but said he would be good at politics. Obama instead worked for a law firm that also represented Rezmar. This firm helped Rezmar get government funding. One of the firm's partners later went into business with Rezko. In 2003, this partner was appointed to a state board at Rezko's request.

In 1995, Rezko's companies gave some of the first political donations to Obama. Starting in 2003, Rezko was on Obama's U.S. Senate campaign finance committee. This committee raised over $14 million. Rezko organized an early fundraiser for Obama that helped him get money for his Senate race. In 2007-2008, Obama identified over $250,000 in campaign donations from Rezko or his close friends. Obama said he gave almost two-thirds of that money to charity groups.

Real Estate Dealings

In 2005, Obama bought a new home in Chicago. On the same day, Rezko's wife, Rita Rezko, bought the empty lot next to it from the same sellers. Obama said he told Rezko about the property, but denied they planned their purchases together. He explained that the previous owners wanted to sell the land as two separate lots, but required both sales to close on the same day.

In 2006, after it was reported that Rezko was being investigated, Obama bought a small strip of land from Mrs. Rezko's property. He paid $104,500, which was more than the assessed value. Obama admitted that this might have looked like something improper. He said, "I consider this a mistake on my part and I regret it."

In December 2006, Mrs. Rezko sold the rest of her property to a company owned by her husband's former lawyer. This sale, combined with the sale to the Obamas, resulted in a profit for her.

Obama's Letters

In 2007, a newspaper reported about letters Obama wrote in 1997. These letters supported a housing project for senior citizens led by Rezko and another partner. The project received over $14 million in taxpayer money. An Obama spokesperson said that Obama supported the project because it would help people in his community. Rezko's lawyer said that Rezko never asked Obama to write the letter.

In a debate in 2008, Senator Hillary Clinton mentioned Obama's association with Rezko. Later, a photo of Rezko with Bill and Hillary Clinton appeared. Hillary Clinton said she wouldn't recognize Rezko because she takes many pictures with people.

Other Political Connections

Rezko's first big political act was hosting a fundraiser for Harold Washington when he ran for mayor of Chicago. He also raised money for many other politicians. Besides Blagojevich and Obama, Rezko helped raise money for other important Democrats like Congressman Luis Gutierrez, Attorney General Lisa Madigan, and former Chicago Mayors Daley and Washington.

Rezko also raised money for Republicans, including former Illinois Governors Jim Edgar and George Ryan. In 2003, Rezko helped organize a large fundraiser for President George W. Bush.

Rezko's wife, Rita, was appointed to the Cook County Employee Appeals Board. This board hears cases from workers who have been fired or disciplined. This part-time job paid $37,000 a year. A company owned by Rezko also had a contract to maintain pay telephones at the Cook County Jail.