21Apr/120

The Chicago Gulag discredits “CI2”

Introducing Nimat Tovakaz, Illinois PayToPlay’s Foreign Correspondent, The Istanbulum Gazetesi

Regarding the federal sentencing of Daniel T. Frawley, former business partner of Antoin “Tony” Rezko, the Sun Times reports that,

“[Judge Ronald] Guzman ordered him to undergo a mental health evaluation and to serve time in a facility that has mental health services.”

This statement came in the context of Guzman’s noting that it’s been six years since Frawley was arrested for the crime for which he now faces jail time.

Also, it came in the context of the Times’ statement that,

“Over three years, Daniel T. Frawley would meet with government agents in an ‘off-campus,’ secret location. There, he divulged details used in at least a half-dozen different investigations, including the federal government’s case against Tony Rezko, a onetime fundraiser for ex-Gov. Rod Blagojevich and Barack Obama before he became president.”

According to his attorney, being “wired up” was a “risky endeavor” for Frawley.

Thomas M. Durkin, one of Frawley’s attorneys, is quoted saying that Frawley was involved in investigation of “several significant public corruption cases”.

What cases were those?  Are they still pending?  If they are, what did the feds just say about the mental stability of their potential confidential informant?

Plus, what impact does the judge’s words have on the alleged “Whistleblower” law suit that the Times contends Frawley filed against his relatives, the McMahon’s, that is allegedly under seal?

If the “significant public corruption cases” Frawley was involved with are buried today, why is that?

No one in the old Chicago media is asking these questions today. Perhaps they’re not authorized to ask.

Frawley is referred to in the government’s motion to arrest Tony Rezko as “CI2,” for confidential informant #2.  His stability was good enough back then to take Tony off the streets while Tony awaited trial, and subsequent conviction.

But at Frawley’s sentencing, the judge tainted Frawley’s character with an implied judgment that Frawley needs medical mental treatment.

Well, perhaps he does.  But not that long ago, Frawley was mentally stable enough to wear a federal wire in dangerous situations.  So now he’s a head case?

Looking at this episode from a foreign perspective, is this what’s going on here in the Gulag that’s Chicago justice?

Forensic psychiatry in Eastern Europe, and in particular in the former Soviet Union, was closely and directly involved in the systematic use of psychiatry for political purposes by declaring political and religious dissidents mentally ill.” (Block, S., & Reddaway, P., 1997, Russia’s Political Hospital, London: Gollancz.)

Leningrad Special Psychiatric Hospital

USSR Ministry of Internal Affairs

 

19Apr/120

Sun Times’ report on Frawley sentencing in error

Hugo Floriani, Investigative Reporter, Illinois PayToPlay

In an April 19, 2012 Sun Times article entitled “Rezko’s business partner, who wore wire, gets one-year prison sentence,Times reporter Natasha Korecki wrote this:

“The Sun-Times has previously reported that Iraq’s Ministry of Electricity gave a $50 million contract to Companion Security in 2005 to train Iraqi security guards. That deal soon fizzled after a regime change.”

Really? If that’s so then why did Colonel David Hunt (US Army, Ret.) of FOX news fame, according to a confidential informant, send this email to Dan Frawley on June 9, 2007?

From: DHunt12xxx@(Address withheld)

To: dtfcompanion@(Address withheld)

Subject: Dan Call Me Great News

Date: Sat, 9 Jun 2007 20:50:56 EDT

Dan, Dewey, just called. Our guy just got back and is going back again on the 23 of this month. Here is what he learned. The Iraq Government considers your contract valid. Your contract is sitting on the Oil Ministers desk to be discussed and implemented by the Oil Committee. We have a guy on the staff of the committee it turns out a Kurd.

The bad news is that the Oil Committee has not acted on anything in two years....typical for Iraq.

Our guy is going back to try to get the committee to get this started.

I am very surprised and happy for you. I would have thought it was dead in the water.

David

The “Dewey” mentioned in the email is probably Duane R. Clarridge, who worked for the Central Intelligence Agency for over two decades.  Read about him in the New York Times here.

Both Hunt and Clarridge were contacted by email in mid-March for comment, but have not responded.

Doesn’t sound like the deal “fizzled” in 2005, as the Sun Times reported.  According to the email above, as of June 9 2007 the Iraqi government considered the contract, all 17 pages of it, signed on April 18, 2005 by Frawley, “Chief Executive Officer Operations” for Companion Security, and Faris Al-Bayati, “Security Consultant for the [Iraqi] Ministry of Electricity,” still “valid”.

Also, the Sun Times reported that:

“’It’s not clear to me why this took such a long time,’ {Judge] Guzman said. He called it ‘fundamentally unfair’ to charge someone, give time to rehabilitate, then have them serve their punishment. Guzman ordered him to undergo a mental health evaluation and to serve time in a facility that has mental health services.”

Guzman is a judge in the federal court that repeatedly postponed Frawley’s sentencing, dealt with him, according to Guzman, in a “fundamentally unfair” manner, and now the judge says he doesn’t understand how that happened! Really?

It’s as though you go to a fine restaurant – your meal comes late, cold, and bad tasting – and the top chef comes out of the kitchen wearing his tall white hat and says, “Gee, it’s just not clear to me how this happened.”

Lastly, there’s that nagging question of how the Sun Times got access to a sealed law suit allegedly filed by Frawley against the McMahons.  Who leaked it, and why?  And what are the consequences for leaking a sealed court document?

At Illinois PayToPlay, we’re guessing there are no consequences.

 

 

17Apr/121

Jack Lavin testifies in a stealth law suit, along with other notables

Hugo Floriani, PayToPlay Investigative Reporter

Did you know that a federal civil law suit went to the jury today, April 17, after Governor Pat Quinn’s Chief-of-Staff, Jack Lavin, testified as a witness; Tony Rezko was deposed; and Daniel T. Frawley didn’t testify because his lawyer indicated that, if called, he would “take the 5th”? Here's Jack.

You probably didn’t know any of that, unless you hang around the court house for grins.  And you certainly didn’t know it if you rely on the Chicago Tribune or the Chicago Sun Times to keep you informed.  (Although today, the Times did report that some bald eagles are nesting in the south suburbs. Good to know stuff.)

The case, filed April 24, 2008, in the United States District Court for the Northern District of Illinois, Eastern Division, pits Semir D. Sirazi vs. Panda Express, Inc., Panda Restaurant Group, Inc. and the Citadel Panda Express, Inc.

(Illinois PayToPlay reported earlier on another law suit, filed just last January, pitting Semir Sirazi vs. Nadhmi Auchi. Tony Rezko plays a role in both cases.)

Here’s the “Nature of the Action” paragraph in the Sirazi vs. Panda Express case that’s now in the jury’s hands:

“1. This is an action by Sirazi against Panda Express for unjust enrichment, fraud, civil conspiracy, aiding and abetting a breach of fiduciary duty and for violations of the Illinois Uniform Fraudulent Transfer Act. From 1993 to 2006, Panda Express, Antoin (“Tony”) Rezko, and various Rezko-controlled companies owned and operated numerous Panda Express restaurants in 5 Midwestern states, the majority of which were in the Illinois/Chicagoland area. In June of 2006, knowing that Tony Rezko was under severe financial and legal distress, and desperate for funds, Panda Express (among other improper actions) bought out PE Chicago, LLC’s 50% interest in the Rezko-Citadel partnership – the entity that owned and operated the Panda Express restaurants – at a price many times less than the fair value of that interest. At the time of the purchase, Panda Express knew that Sirazi and others had significant ownership interests in PE Chicago. In fact, Sirazi, at the time of the purchase – through his interest in Rezko Enterprises, LLC – owned a significant majority of PE Chicago. Panda Express, however, fraudulently conspired with Rezko to acquire PE Chicago’s entire interest in the Rezko-Citadel partnership without Sirazi’s knowledge and at a price far less than the fair value of such interest. As a result of the improper actions of Panda Express, Sirazi has suffered losses in excess of $15 million.”

So, Sirazi asserts he was cheated big-time by Rezko and the Panda Express Chinese food chain, headquartered in Rosemead, California. The originating Pandas were “Andrew and Peggy Cherng and Andrew's father, Master Chef Ming Tsai Cherng, all of whom used to live in the Yangzhou region of China’s Jiangsu province. They started their first Panda Inn restaurant in 1973 in Pasadena, California.”

Here’s the real interesting part: Daniel T. Frawley, in a recently obtained email sent to a confidential source and forwarded to Illinois PayToPlay, claims that Governor Pat Quinn’s Chief-of-Staff, Jack Lavin, fraudulently cooked Rezko’s Papa John’s books by transferring $4,000,000 from Panda Express accounts into Tony’s pizza business.  Here’s that email:

From: Dan Frawley <Address withheld>

Date: Thu, Jun 2, 2011 at 1:00 PM
Subject: I MET OBAMA'S AID AT THOMPSON PRISON WHERE BO WANTED TO SHIFT QUANTANIMO PRISONERS
To: robert XXXXX <Address withheld>

THOMSON PRISON, OBAMA, REZKO, JACK LAVIN & MOE CONTRACT

THOMSON PRISON IS THE FIRST SIGHT THE STATE OF ILLINOIS PROVIDED ME TO LOOK AT TO TRAIN THE IRAQI MOE CANDIDATES.

SEAMUS AHERN OF SENATOR OBAMA’S JOILIET ILLINOIS OFFICE WAS AT THOMSON. NEVER CALLED THE SENATOR’S OFFICE TO ARRANGE TO BE MET.

TONY REZKO CALLED JACK LAVIN REGARDING TRAINING THE IRAQI’S AT AN ILLINOIS GOVERNMENT SIGHT.

JACK LAVIN WAS THE CEO OF ONE OF TONY’S COMPANIES. JACK LAVIN MADE A JOURNALENTRY IN PANDA RESTARAUNTS FINANCIAL STATEMENT. JACK TOOK 4 MILLION DOLLARS OF PANDA’S PROFITS AND MADE A JOURNAL ENTRY INTO PAPA JOHN’S PIZZA PROFITS IN ORDER FOR TO OBTAIN A 10 MILLION LOAN FROM G.E. CREDIT.

ANDREW CHERNIG WAS A 50/50 PARTNER OF TONY’S IN PANDA. WHEN CHERNIG DISCOVERED THAT LAVIN AND REZKO DEFRAUDED HIM CHERNIG CAME INTO CHICAGO ON A FRIDAY AND EMPTIED THE PANDA OFFICE.

TONY AND LAVIN KEPT A DOUBLE SET OF BOOKS FOR PAPA JOHN’S. TOD SELACK THE ACCOUNTANT FOR RECKON AND LAVIN PREPARED THE DOUBLE SET OF BOOKS PER AL CHAIB AND REZKO’S ORDERS.

I HAVE SEEN BOTH SET OF BOOKS AND PROVIDED THE USAO’S OFFICE THE OPPORTUNITY TO COPY SAID BOOKS. THE ENTRY LAVIN MADE INTO THE PAPA JOHN BOOKS WAS KNOWN AS THE MIRACE ENTRY AROUND THE REZMAR OFFICE.

CHERNIG NEVER REPORTED THE FRAUD BECAUSE CHERNIG PARTICIPATED WITH AL CHAIB AND TONY IN STAFFING PANDA RESTAURANT WITH ILLEGAL CHINESE ALIENS CHERNIG HELPED SMUGGLE INTO THE UNITED STATES. CHERNIG WORKED THE CHINESE 80-100 HOUR PER WEEKAND PAID THEM FOR 40. TONY AND CHAIB HOUSED THE CHINESE IN THEIR BUILINGS IN OVER CROWDED CONDITIONS AND OVER CHARGED THE CHINESE FOR RENT.

Plenty to chew on there, such as…

  • Was Rezko deposed about the allegation that he was a slum landlord for illegal Chinese immigrant workers employed by the Pandas?
  • Was Lavin asked about the fraudulent bookkeeping allegation from Frawley?
  •  Is this why Frawley’s attorney announced that Frawley would “take the 5th” if called to testify?
  • Peggy Cherng testified at the trial.  Did she mention the use of illegal Chinese immigrants in Panda Express restaurants, as alleged by Frawley?
  • How about Al Chaib – was he asked about any of this?

Now that they have this email, no doubt the intrepid investigative reporters at the Sun Times and the Trib will jump on this story.

Hey, we can dream can’t we?

 

17Apr/120

Pat Quinn, destined to be third in the trifecta of jailed IL governors?

Martin Rivers, Introducing Illinois PayToPlay’s Springfield Correspondent

Is a third Illinois governor in- a-row destined for a trip up-the-river to the Big House?  That’s Blago on the left, on a bad hair day.  Ryan is on the right. Is Pat Quinn, in the middle, the next Illinois governor to do the federal perp walk?

Pat sure looks like “Larry” of “Three Stooges” fame, if he’d let his hair grow out some.

Why could he be next in the conga line of incarcerated Land of Lincoln chief executives?

Well, first of all, here’s what Pat once had to say about “Moe,” AKA Blago:

"He's always been a person who's honest and one of integrity...I have confidence the governor does the right thing all the time."

That’s evidence of complicity, or stupidity.  And Pat’s not stupid.

Then there’s Quinn’s continuing attachment to Antoin Rezko through his current Chief-of-Staff, Jack Lavin.  Quoting the Chicago Tribune, here’s what that extreme-conservative, Republican web site, the Huffington Post, wrote about Lavin:

“Lavin served as Blagojevich's director of the Department of Commerce and Economic Opportunity after [convicted fundraiser Tony] Rezko recommended him for the post. Lavin once worked as the chief financial officer for Rezko's food-related business, and took more than $12,000 in donations from Rezko's firm while considering a run for elected office in 2001.”

Back on October 11, 2011, Illinois PayToPlay suggested that the professional journalists in the Chicago media pose these questions to U.S. Attorney Patrick Fitzgerald:

“Is there any evidence to suggest that, while he was Rezko’s chief bean counter, Jack Lavin moved a $3,000,000 line item from the Panda Restaurant operated by Tony over into his Papa John’s Pizza books in order to help get a loan from GE Capital?

And then, as a follow-up:

Well, if you can’t answer that question, or won’t, then who kept Rezko’s second set of books for his Papa John’s Pizza store? And why have we never heard about that?”

Well, of course, that didn’t happen.

Illinois PayToPlay will soon be releasing information from a confidential informant, identified only as “CI2” (confidential informant #2) in the “Motion For Issuance Of An Arrest Warrant” for Rezko, filed on January 28, 2008 by Patrick Fitzgerald, that contains CI2’s allegation that Rezko’s CFO helped Tony R. cook the Papa John’s books in order to get that loan from G.E. Capital.

As the late Paul Harvey used to say – “Stand by…for more.”

Oh, and by the way, Fitz’s office has known of Lavin’s alleged involvement in the miracle bookkeeping incident for, at least, four years.  And what have the feds done with that information?

Blago’s gone, but has anything really changed in the way the governor’s office down here in Springfield operates?

 

 

 

28Mar/120

Further Update: Details of Frawley v. McMahon “Whistleblower” Lawsuit Just Exposed By Sun Times

Ernie Souchak, Editor-in-Chief, Illinois PayToPlay

Further Update:

Apparently, in response to articles recently run by the Chicago Sun Times that state, as fact, that a “Whistleblower” lawsuit was filed by Daniel T. Frawley in July 11, 2011,Mayor Rahm Emanuel is proposing to permanently ban an electrical contracting company with ties to Ald. Edward M. Burke (14th) from getting city work because its owners and their husbands allegedly operated phony women- and minority-owned companies that have gotten millions of dollars in city contracts.”

This proposed ban was announced today, March 28, 2012, in the Sun Times.  

His Honor and the paper must have access to a fully-authenticated, signed copy of a date-stamped lawsuit that we, at Illinois PayToPlay cannot locate. If they don’t, their claims of its existence are specious. But let’s reserve judgment.

We need your help.

If you have proof that such a lawsuit was filed, post here on comment board.

If it was filed and sealed in July 2011, it should be available to the public by now. And, if it was filed and remains sealed, how did the Sun Times get a copy? Are there not illegalities involved in leaking a sealed court document? Lastly, if it was never filed, what’s this assault on the McMahon’s all about anyway?

Developing…

Update:

The Chicago Sun Times has now run the second of what it promises is a three part series concerning a whistleblower lawsuit filed by attorneys representing Daniel T. Frawley.  The Sun Times has yet to provide its readers a copy of that lawsuit.  Is it the same one Illinois Pay-To-Play posted below?  If it is not, it is time for the Sun Times to show its readers the lawsuit on which it’s series is based.  

(Originally posted on Illinois Pay-to-Play  3-25-2012)

In an article dated March 24, 2012, the Chicago Sun Times broke the explosive story of a lawsuit filed July 2011 by Daniel T. Frawley, cooperating federal government mole-informant in Patrick Fitzgerald’s investigation of Tony Rezko, and former Rezko business partner.

According to the Sun Times, the lawsuit charges various members of the McMahon family, associated with McMahon-owned businesses, of fraudulent contracting practices.  The reporters wrote that,

“Frank McMahon’s first cousin, Daniel T. Frawley, filed a “whistleblower” lawsuit in federal court last July accusing McMahon Food, C & C and Krystal of actually being run by men, even though the companies are certified as being women-owned and -operated. As a result, Frawley says McMahon Food was able to obtain multimillion-dollar deals with Cook County government, including supplying dairy goods to the Cook County Juvenile Temporary Detention Center.”

Illinois PayToPlay recently received a copy of a “whistleblower” lawsuit attributed to Frawley, by a confidential source, that fits the description of the document exposed by the Sun Times. Uncertain of its authenticity at the time, we chose not to make it public, but do so now.

Here is a pdf. link to the lawsuit we received. Daniel Frawley Whistleblower Lawsuit (PDF) - We have not yet been able to contact the firm named as representing Frawley for comment.

25Mar/121

Update: Details of Frawley v. McMahon “Whistleblower” Lawsuit Just Exposed By Sun Times

Ernie Souchak, Editor-in-Chief, Illinois PayToPlay

Update:

The Chicago Sun Times has now run the second of what it promises is a three part series concerning a whistleblower lawsuit filed by attorneys representing Daniel T. Frawley.  The Sun Times has yet to provide its readers a copy of that lawsuit.  Is it the same one Illinois Pay-To-Play posted below?  If it is not, it is time for the Sun Times to show its readers the lawsuit on which it’s series is based.  

(Originally posted on Illinois Pay-to-Play  3-25-2012)

In an article dated March 24, 2012, the Chicago Sun Times broke the explosive story of a lawsuit filed July 2011 by Daniel T. Frawley, cooperating federal government mole-informant in Patrick Fitzgerald’s investigation of Tony Rezko, and former Rezko business partner.

According to the Sun Times, the lawsuit charges various members of the McMahon family, associated with McMahon-owned businesses, of fraudulent contracting practices.  The reporters wrote that,

“Frank McMahon’s first cousin, Daniel T. Frawley, filed a “whistleblower” lawsuit in federal court last July accusing McMahon Food, C & C and Krystal of actually being run by men, even though the companies are certified as being women-owned and -operated. As a result, Frawley says McMahon Food was able to obtain multimillion-dollar deals with Cook County government, including supplying dairy goods to the Cook County Juvenile Temporary Detention Center.”

Illinois PayToPlay recently received a copy of a “whistleblower” lawsuit attributed to Frawley, by a confidential source, that fits the description of the document exposed by the Sun Times.  Uncertain of its authenticity at the time, we chose not to make it public, but do so now.

Here is a pdf. link to the lawsuit we received. Daniel Frawley Whistleblower Lawsuit (PDF) - We have not yet been able to contact the firm named as representing Frawley for comment.

20Mar/120

Besides the Postman Video, Jerome Corsi has another about Obama

 <<BREAKING NEWS>>

Hugo Floriani, Investigative Reporter & Annabel Kent, Chicago Media Critic

Illinois PayToPlay has learned that, in addition to the Postman video recently released by Jerome Corsi on World Net Daily, Corsi also holds a 2011 recorded interview with former Rezko associate Daniel T. Frawley.

The recording was made late last year in Chicago in a meeting that involved Corsi, Frawley and three other persons who gathered to discuss the possibility of writing a book.

The recording reportedly includes a description of how, in 2004, during Nadhmi Auchi’s visit to Chicago, Auchi, Antoin “Tony” Rezko, and Barack Obama met in the basement “cigar room” inside Rezko’s 30-room mansion in Wilmette, Illinois where they discussed, among other things, the purchase of a 62-acres plot in the South Loop.

A January 2012 lawsuit pitting a Chicago investor in the land purchase, Semir Sirazi, against Auchi was linked in a previous Illinois PayToPlay article.

In response to an inquiry concerning access to the Frawley video, Corsi confirmed that Auchi’s ’04 Chicago visit was discussed but that the video would only be released with Frawley’s approval.

A recent post on Illinois PayToPlay reported that Frawley claims that he gave Rezko $400,000 in cash that Rezko then gave to Obama.

Frawley faces sentencing in mid-April on a bank fraud charge to which he pled guilty in February 2011.

18Mar/120

Semir Sirazi vs. Nadhmi Auchi: A Chicago Lawsuit Underway

Thomas Barton, Illinois Pay-to-Play Political Commentator

The repercussions of Tony Rezko’s business dealings with Nadhmi Auchi are now playing out in a lawsuit, filed on January 30, 2012 in the U.S. District Court, Northern District of Illinois, Eastern Division, pitting Plaintiffs Semir D. Sirazi, Greenstone Capital L.L.C. and Mardini, Inc., vs. Defendants General Mediterranean Holding, SA, Orifarm, SA, and Nadhmi Auchi.

The first numbered paragraph of the complaint sets the table:

1. This case arises out of the GMH Defendants' efforts to leapfrog the Sirazi Plaintiffs, superior creditors of Antoin S. Rezko1 ("Rezko") by secretly obtaining Rezko's ownership interests in a 62 acre parcel in Chicago's South Loop co-owned with the GMH Defendants (the "Parcel") in exchange for forgiving Rezko's debts to them and providing Rezko with access to millions of dollars in new capital.

Here’s the entire document:

Are you wondering who Nadhmi Auchi is?

Illinois PayToPlay recently posted a 2008 piece written by John A Shaw, former senior official of US Defense, State, and Commerce departments that answers that question.

We’ll highlight below another article about Auchi, this one written in 2008 by Andrew Walden. It will explain why you haven’t heard much about Auchi to date.  It’s because he has lawyers in Great Britain and the U.S. who, over the years, have…discouraged…writers for both the legacy media and the new media bloggers from even mentioning Auchi.

That includes the Chicago Sun Times and the Chicago Tribune.

That makes this lawsuit all the more interesting, since it’s a matter of public record and impossible to suppress – although it is possible to ignore, as the Chicago big dailies have been doing.

Now, if you’re interested in knowing more about Nadhmi Auchi, here’s some of Walden’s piece:

_____________________________________________________________________________

 

Iraqi Billionaire Threatens Reporters Investigating Rezko Affair

Posted By Andrew Walden, August 24, 2008 @ 12:18 pm, In Accuracy In Media

“Why aren’t the American media investigating the role of British billionaire businessman Nadhmi Auchi in supplying loans to Barack Obama fundraiser Tony Rezko? Some point to media bias, but there is another factor. Working for Auchi, who was born in Iraq, attorneys from London law firm Carter-Ruck have for several months been flooding American and British newspapers and websites with letters demanding removal of material they deem “defamatory” to their client.

In its June 28 edition [1], British satirical magazine Private Eye explains: “Until Carter-Ruck and Partners and England’s stifling libel laws got to work, the few American journalists not caught up in Obama-mania were turning to the archives of the British press to answer an intriguing question: who is Nadhmi Auchi [2]?”

What is so “stifling” about English libel law? In the U.K., as Carter-Ruck explains on its own website [3], “A libel claimant does not have to prove that the words are false or to prove that he has in fact suffered any loss. Damage is presumed.”

The Obama campaign recently issued a non-denial [4] denial in response to claims that Obama met with Auchi―contained in Jerome Corsi’s bestseller, The Obama Nation. They cited only two references. One is, “Mr. Auchi’s lawyer” who told the February 27, 2008 London Evening Standard, “As far as he can remember he has had no direct contact with Mr. Obama.” Another is, “A lawyer for Auchi, Alasdair Pepper” who says, according to the April 16, 2008 Washington Post, “Auchi Had ‘No Recollection’ Of Meeting Obama or Michelle.” Alasdair Pepper is the attorney whose name appears [5] on the Carter-Ruck [6] demand letters [7].

The Secret Loan

A secret $3.5 million loan [8] from an Auchi company to key early-money Barack Obama fundraiser Antoin Rezko was exposed while Rezko was awaiting trial on fraud and money-laundering charges earlier this year. Rezko’s bail was revoked and police showed up banging on the doors of his Wilmette Chicago mansion to drag him off to jail early in the morning of January 28th [9]. Auchi’s loan to Rezko had come on May 23, 2005 but had not been disclosed to the Court as required in his bail agreement. Three weeks later, on June 15, 2005, Rezko’s wife assisted the Obamas in the purchase of their South Chicago mansion by purchasing a next-door undeveloped lot being sold with the house.

According to the Times of London [10], “Mr. Rezko’s lawyer said his client had ‘longstanding indebtedness’ to Mr. Auchi’s General Mediterranean Holding (GMH). By June 2007 he owed it $27.9 million. Under a Loan Forgiveness Agreement described in court, M. Auchi lent Mr. Rezko $3.5 million in April 2005 and $11 million in September 2005, as well as $3.5 million transferred in April 2007. That agreement provided for the outstanding loans to be ‘forgiven’ in return for a stake in the 62-acre Riverside Park development.

Rezko’s relationship with Barack Obama goes back to at least 1990, when Obama’s law firm did work relating to thousands of now-decaying [11]Rezko apartment units in South Chicago. Rezko was a key early-money fundraiser in Obama’s state Senate campaigns and his failed run at the U.S. Congress.

According to The Times of London [12], “Mr. Auchi first met Mr. Rezko after the 2003 Iraq war and they have a business relationship.” At the time Auchi was facing the possibility of extradition to France [13]. The Times of London [14] explains: “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.”

In 2003, Nick Cohen of the UK Guardian [15] wrote:

Allow me to introduce you to Nadhmi Auchi. He was charged in the 1950s with being an accomplice of Saddam Hussein, when the future tyrant was acquiring his taste for blood. He was investigated in the 1980s for his part in alleged bribes to the fabulously corrupt leaders of post-war Italy. In the 1990s, the Belgium Ambassador to Luxembourg claimed that Auchi’s bank held money Saddam and Colonel Gadaffi had stolen from their luckless peoples. In 2002, officers from the Serious Fraud Squad raided the offices of one of Auchi’s drug companies as part of an investigation of what is alleged to be the biggest swindle ever of the (British National Health Service). With allegations, albeit unproven, like these hanging over him, wouldn’t you think that British MPs would have the sense to stay away?

But after threats from Carter-Ruck, Cohen’s “defamatory” article became one of six Guardian and Observer articles [16]scrubbed from the Internet this April.

Blogger “A Jacksonian [17]received a similar demand [18] on or before June 24. His article is still up. It details much of the information contained in the six deleted Guardian/Observer articles.

Source of Wealth

Auchi in 1967 began an Iraq Oil Ministry career eventually rising to be Director of Planning and Development under the Baathist dictatorship. He formed GMH in 1979 and then left Iraq. A key source of weapons procurement for Iraq [19] during the Iran-Iraq war, GMH became the largest single private shareholder [20] of Banque Nationale du Paris (BNP) which later merged with Paribas to form BNP-Paribas. BNP and BNP-Paribas, at Saddam Hussein’s insistence, handled all Oil-for-Food [21] transactions [22] until 2001 when the incoming administration of George W. Bush demanded change. ”Sirazi v GMH (62 acre S. Loop)

…to read more of Walden’s article click here

17Mar/120

Mission Accomplished: Blago Joins Rezko in the Silence Chamber of Federal Prison

Hugo Floriani, Investigative Reporter

The crime spree that plagued Illinois, and that was boldly brought to a stop by the sudden arrest of Governor Rod Blagojevich, is now officially over.

Blago is behind bars, and Patrick Fitzgerald’s mission is complete:  Blago joins Rezko in the silence chamber of federal prison where the treasure trove of what they know about Illinois corruption, past and present, has been muted.

Gee, for a war against statewide crime, there sure aren’t many official casualties, except, of course, Illinois’ citizens.

We’ll never know what Blago meant in these audio clips where he talks (in language unsuitable for children) in cryptic terms about the relationship between then U.S. Senator Barack Obama and Antoin “Tony Rezko.”

(Video: H/T Citizen Wells News)

We’ll never know the extent of influence that the international billionaire financier in the photograph wielded over Tony, Blago, and Barack.

And, as soon as the two remaining Rezko Watchers highlighted in a recent piece in the Chicago Daily Observer receive their sentences this spring – unless sentencing is postponed yet again for Daniel Frawley and Daniel Mahru – they, too, will fade into silence, joining Bernard Barton, AKA John Thomas.

In the immortal words of Sonny & Cher…the beat goes on.

5Mar/120

Sun Times withholds information about Frawley’s Obama-bribe accusation

Jontel Kassidy, Capital Correspondent

Illinois PayToPlay has learned that, since January 19, 2012, two reporters and one editor at the Chicago Sun Times have held relevant information provided by an informant concerning Daniel Frawley’s claim that he gave Tony Rezko $400,000 in cash that Rezko then passed on to U.S. Senator Barack Obama.

No one at the paper has either acknowledged receipt of the information, expressed an interest in how it was obtained, nor queried the source for additional details.

On February 27, 2012, Illinois PayToPay investigative reporter Hugo Floriani reported that:

“Frawley’s claim that the money he gave Rezko went to Obama is alluded to in a December 1, 2010 deposition executed in the context of a legal malpractice complaint filed by Frawley, on July 9, 2010, against his former attorney and long-time friend, George Weaver.

Frawley alleges that Weaver was not representing his best interests when Weaver interrupted a March 2006 phone conversation, supervised by the U.S. Attorney’s Office, between Frawley and Rezko who were scheduling a face-to-face meeting.

Frawley cooperated with U.S. Attorney Patrick Fitzgerald’s investigation of Rezko by wearing a wire.

On page 21 of the deposition, this exchange is recorded between Weaver’s attorney, Daniel F. Konicek, and Frawley:

Konicek: And Tony Rezko was where when you were speaking to him?

Frawley: He was on the other end of the phone. I don’t recall where he was.

Konicek: Okay. Now, that answers one part of the question is who was present when Mr. Weaver made a gesture across his neck with both hands [signaling that the conversation should cease]. But my question was a little different because your complaint specifically alleges he [Weaver] told you to withhold certain information, right.

Frawley: Yes.

Konicek: I’m assuming the information is about the payments made by Rezko to Obama, so we know we’re talking about the right conversation, right?

Franklin: (Charles Franklin, representing Frawley.) I’m not going to make any objection. I think that’s – you may make that assumption, but I think it’s unfair to make the – to have Mr. Frawley make the assumption. Also, it doesn’t go to who or where or the forum non conveniens issue.

Konicek: There’s going to be multiple conversations, I want to make sure I understand where each occurred. So you said he (Weaver) withheld information. Am I correct it was about Obama being paid by Rezko?

The Witness: (Frawley) I’m not answering that question based upon my attorney’s instructions.

Since the July 11, 2011 Times article that linked to the deposition cited above, there’s been no mention by the paper of the alleged payment of Rezko to Obama using money Rezko received from Frawley.

Perhaps the paper is sitting on the story, waiting for it to hatch.  Just as they sat for seven years on the story of David Koschman’s murder and then hatched it on August 4, 2011.