Obama donates money from contributors linked to indicted Chicago developer

By THE ASSOCIATED PRESS

WASHINGTON (AP) – Democratic presidential candidate Barack Obama is giving charity more than $40,000 in past political contributions linked to Chicago real estate developer and fast food magnate Antoin “Tony” Rezko, who is facing federal corruption charges, his campaign said Saturday.

The contributions are from seven individuals who contributed to Obama’s House and Senate campaigns. None of the money was for his current presidential bid.

“Recent public information has called into question contributions to the Obama campaign from a donor and fundraiser,” Obama spokesman Bill Burton said in a statement Saturday. “It is the policy and practice of the campaign to review all such new information and dispose of questionable funds such as the potential illegal ‘straw donations’ that campaigns, like other presidential campaigns this cycle, must address as new facts emerge.

“Our consistent practice in these circumstances is to give the funds to charity out of an abundance of caution,” Burton said.

The decision to dispose of the money came after the Chicago Sun-Times reported Saturday that Obama is the unnamed “political candidate” mentioned in one paragraph of a 78-page prosecution document that outlines the case against Rezko.

Rezko, a longtime fundraiser for Obama, is charged with fraud, attempted extortion and money laundering. Prosecutors say he conspired to get campaign money and payoffs from firms seeking to do business before two state boards.

Obama has not been accused of any wrongdoing.

The returned money includes three $10,000 contributions from donors that the campaign identified as having connections to Rezko. They are Michel Malek, Craig Morgan and Elie Maloof.

When prosecutors unsealed their charges against Rezko in October 2006, Obama gave $11,500 in Rezko contributions to charities.

Obama rivals Hillary Rodham Clinton and John Edwards have also encountered fundraisers who have been charged of making illegal contributions. Clinton returned more than $800,000 in contributions linked to Norman Hsu, who is facing federal fraud charges in New York.

One-time Edwards fundraiser Geoffrey Fieger was indicted last year on charges of conspiring to make more than $125,000 in illegal contributions. The Edwards campaign has said it is waiting for the outcome of the case before deciding how to proceed.