Brit-Iraqi billionaire behind loans to Obama

Times:

A British-Iraqi billionaire lent millions of dollars to Barack Obama's fundraiser just weeks before an imprudent land deal that has returned to haunt the presidential contender, an investigation by The Times discloses.

The money transfer raises the question of whether funds from Nadhmi Auchi, one of Britain’s wealthiest men, helped Mr Obama buy his mock Georgian mansion in Chicago.

A company related to Mr Auchi, who has a conviction for corruption in France, registered the loan to Mr Obama's bagman Antoin "Tony" Rezko on May 23 2005. Mr Auchi says the loan, through the Panamanian company Fintrade Services SA, was for $3.5 million.

Three weeks later, Mr Obama bought a house on the city's South Side while Mr Rezko's wife bought the garden plot next door from the same seller on the same day, June 15.

Mr Obama says he never used Mrs Rezko's still-empty lot, which could only be accessed through his property. But he admits he paid his gardener to mow the lawn.

Mrs Rezko, whose husband was widely known to be under investigation at the time, went on to sell a 10-foot strip of her property to Mr Obama seven months later so he could enjoy a bigger garden.

Mr Obama now admits his involvement in this land deal was a “boneheaded mistake”.

Mrs Rezko’s purchase and sale of the land to Mr Obama raises many unanswered questions.

It is unclear how Mrs Rezko could have afforded the downpayment of $125,000 and a $500,000 mortgage for the original $625,000 purchase of the garden plot at 5050 South Greenwood Ave.

In a sworn statement a year later, Mrs Rezko said she got by on a salary of $37,000 and had $35,000 assets. Mr Rezko told a court he had "no income, negative cash flow, no liquid assets, no unencumbered assets [and] is significantly in arrears on many of his obligations."

...

Asked if she used money from her husband to buy the land next to Mr Obama's house, she said: "I can't answer these questions, I'm sorry."

Asked how long she and her husband had known Mr Auchi, she replied: "I will not be able to answer this question."

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A prosecution document filed last month alleged that a "political candidate" - identified by the Chicago Sun-Times as Mr Obama - received a $10,000 campaign contribution from what is said to be a $250,000 kickback in the corruption case. That means Mr Obama's name could figure in Mr Rezko's trial, although he is not accused of any wrongdoing.

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Mr Auchi was convicted of corruption, given a suspended sentence and fined £1.4 million in France in 2003 for his part in the Elf affair, described as the biggest political and corporate scandal in post-war Europe. He, in a statement from his media lawyers, claims he is appealing against the sentence.

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There is more. The story adds some detail as to where Rezko got his money for this transactions some of which benefited Obama. With his 2003 conviction it is understandable why Mr. Auchi would want Rezko to act as a nominee for his investments in the US.

There is no indication that the Clinton campaign was a source for this story. Apparently the times did its own digging. Hillary Clinton may want to add some more adjectives to her description of Rezko now as well as question Obama about Mr. Auchi's contribution to his Chicago lifestyle.

Obama could be filled with hope that the NY Times and other liberal medias don't change the focus of their coverage from McCain and his past associations to those of Obama. The facts do sound more relevant to Obama's judgment about the appearance of his past associations and the personal benefit received from those associations.

Update: Captain Ed speculates that Obama's money ties to an Iraqi financier with ties to Saddam may have really been behind his anti Iraq war position.