Obama Donor Received A State Grant

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LA Times   |  Chuck Neubauer and Tom Hamburger   |   April 27, 2008 10:17 AM

Read More: Barack Obama, Obama Donor, Obama Fundraising, Obama Table Tennis, Breaking Politics News
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After an unsuccessful campaign for Congress in 2000, Illinois state Sen. Barack Obama faced serious financial pressure: numerous debts, limited cash and a law practice he had neglected for a year. Help arrived in early 2001 from a significant new legal client -- a longtime political supporter.

Chicago entrepreneur Robert Blackwell Jr. paid Obama an $8,000-a-month retainer to give legal advice to his growing technology firm, Electronic Knowledge Interchange. It allowed Obama to supplement his $58,000 part-time state Senate salary for over a year with regular payments from Blackwell's firm that eventually totaled $112,000.

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- mspiglet See Profile I'm a Fan of mspiglet

... there's an old saying... attributed to Mexico...

"The man that looks for a mule without fault... travels on foot."

    Favorite    Flag as abusive Posted 08:41 AM on 04/28/2008
- meanguy See Profile I'm a Fan of meanguy

i don't see anything illegal in what obama did for the man who 'signed his paycheck'...that's just the way 'things are done'...it does take the shine off obama's 'new way of politics' apple, though, .he's no different from all the rest, and neither are his supporters; it just doesn't matter to them when oily old-style wheeling and dealing by obama gets revealed because 'other people do it, too, and they're worse.' how long have we heard THAT tired old song in politics? bottom line: there's nothing particularly fresh or new about obama; it's just new packaging and better advertising...same old product, tho...the stuff that helps the crops grow

    Favorite    Flag as abusive Posted 08:10 AM on 04/28/2008
- zann See Profile I'm a Fan of zann

What bothers me is that this story is framed like it was a scandal. Its like saying I know you didn't break your wife's arm but... Instead of saying nothing at all, which is what this deserves.

Obama, a bright energetic Harvard lawyer, former president of the Law Review and a senior lecturer at the University of Chicago, was paid what amounts to around $300 a day (not per portion of an hour) for working on what was to become a highly successful electronics company, dealing with computer-oriented services for some major corporations. You somehow think they didn't need any legal help?

He reported it to the IRS and the state of Illinois. Yet the story was written as though it was some sort of secret payoff or favor, as though it "walks like a duck" as one commenter said. Blackwell is known as a numbers guy, who makes lots of money legitimately and does evil things like tutor black kids in math in his spare time, and promote table tennis as a national sport,

This is such a non-story. The deal with his house may have been a little shady, but not this.

    Favorite    Flag as abusive Posted 05:05 AM on 04/28/2008
- rollingdivision See Profile I'm a Fan of rollingdivision

$96,000 a year on "retainer" is a how you buy a politician. This has legs and is yet another indication of Obama's lack of judgment. At the least this deal was unethical. If a Republican was doing the exact same thing there would be no defenders for him and rightfully so.

    Favorite    Flag as abusive Posted 08:07 AM on 04/28/2008
- rollingdivision See Profile I'm a Fan of rollingdivision

$8,000 a month retainer was a nice way of giving Obama $96,000 a year whether he did any work or not. If Obama was paid for actual hours or days of work that would be fine. But just handing him almost a hundred thousand a year for being "on retainer" is buying a politician. Don't we worry when a politician becomes so reliant on a private individual for their very existence? Doesn't it make them more susceptible to threats or intimidation? Isn't there an appearance of impropriety or conflict of interest? This has legs in that it demonstrates Obama's terrible judgment and Obama has made his judgment an issue in this campaign. This was his major source of income, it was from a single person and Obama forgot to mention it on his Illinois ethics report!! Seems as though Obama realized how unethical this deal was. Another boneheaded mistake anyone? BTW, if a Republican politician had the exact same deal there would be no defenders for him and rightfully so.

    Favorite    Flag as abusive Posted 07:55 AM on 04/28/2008
- Sparklez See Profile I'm a Fan of Sparklez

Well he was also a consultant for them

That is why he was on retainer

And big firms use billable hours, smaller firms usually dont do that

They take retainers or clients pay when they get paid, or they get paif up front a flat fee

    Favorite    Flag as abusive Posted 09:03 AM on 04/28/2008
- rollingdivision See Profile I'm a Fan of rollingdivision

It doesn't matter. Obama was on the payroll to the tune of $96,000 a year, he was bought. Again, if he was paid for his actual work, hours or days there would be no problem. But he wasn't. Obama was sent an $8,000 check every month if he did any work or not. What do you think they were buying for $96,000? It's unethical. And regardless of the size of the firm, there is no reason Obama couldn't have billed for actual hours worked.

    Favorite    Flag as abusive Posted 09:37 AM on 04/28/2008
- AdamX See Profile I'm a Fan of AdamX

Is there a story?

    Favorite    Flag as abusive Posted 01:27 AM on 04/28/2008
- xcrunner77 See Profile I'm a Fan of xcrunner77

His "help" was he wrote a letter. The key to the story is this line: "Obama did not have decision-making authority over the grant."

The ping pong guy could just as easily have been turned down. The decision was made by someone else, and nowhere in the story is there any suggestion that Obama got involved in the decision making process or leaned on anyone to award the contract. He probably judged that this was an honorable person trying to make a living, whom he trusted, and so he wrote a form-letter recommendation.

Big deal. Keep looking for that scandal.

    Favorite    Flag as abusive Posted 01:06 AM on 04/28/2008
- Sparklez See Profile I'm a Fan of Sparklez

Honestly, it wouldnt matter if dude was paying him in order for him to help him get the grant

The thing is, Obama didnt have the final say so about it and then on top of that, he disclosed it right along with his wife

Im still failing to see the story

    Favorite    Flag as abusive Posted 11:55 PM on 04/27/2008
- pupbayer See Profile I'm a Fan of pupbayer

Oh, my gawd! Obama's a politician! Who knew?

    Favorite    Flag as abusive Posted 10:50 PM on 04/27/2008
- ultramagnetic See Profile I'm a Fan of ultramagnetic

Didn't the Clinton rent out the Lincoln Bedroom in the WHITE HOUSE?

    Favorite    Flag as abusive Posted 10:41 PM on 04/27/2008
- antaeus See Profile I'm a Fan of antaeus

Yes, they did. But we were told Obama represented change. Deceived again.

    Favorite    Flag as abusive Posted 02:07 AM on 04/28/2008
- AERO See Profile I'm a Fan of AERO

But the stud services were thrown in for free.

    Favorite    Flag as abusive Posted 01:17 AM on 04/28/2008
- uglybetty See Profile I'm a Fan of uglybetty

Guess that would also apply to Obama !

    Favorite    Flag as abusive Posted 09:49 AM on 04/28/2008
- gonow See Profile I'm a Fan of gonow

Yes, it's better to go with big league crooks
than someone who is black. Did we
mention Barack was black.

    Favorite    Flag as abusive Posted 02:41 AM on 04/28/2008
- gomonkeygo See Profile I'm a Fan of gomonkeygo

Thank you for the honesty. I'm more convinced every single day that there is only one issue that the media really cares about regarding Obama, but they can't say it - the color of his skin. Any way they can spin any story to the negative, they will. Because they can't come right out and start every story with:

"In case you hadn't heard, there's a BLACK MAN running for President! And now to Suzie with the weather..."

For this reason alone, I have trouble taking seriously any negative story about Obama. I'm probably just paranoid, but the giant cone of silence which has now descended upon the Rev. Wright story after he shows himself to be a smart, reasonable, caring, decent human being rather than the screaming white-hating racist the media (even the NYTripe) was painting him as, is the final nail in the coffin. It's the proof. If they can't go racist on Obama, they'd rather not touch the story.

    Favorite    Flag as abusive Posted 09:28 AM on 04/28/2008
- KQuarksSuperCollider See Profile I'm a Fan of KQuarksSuperCollider

Face it Clintonistas Obama did not offer the grand, fund the grant or legislate the grant. He wrote a letter on behalf of a client. Obama earned the money for his consulting fees.

    Favorite    Flag as abusive Posted 10:38 PM on 04/27/2008
- RobinL See Profile I'm a Fan of RobinL


Jesus---puh-leeze! You wanna see real sleeze? Cut and paste this URL:
www.paulvclinton.com

Give me a break!

    Favorite    Flag as abusive Posted 03:14 AM on 04/28/2008
- TinaFreeman See Profile I'm a Fan of TinaFreeman

You're using logic. That never works.

    Favorite    Flag as abusive Posted 11:27 PM on 04/27/2008
- Krikkit See Profile I'm a Fan of Krikkit

Why is it, I'd like to ask, that so few people understand how their state governments and funding work? And why is it that media continues to report things like this as if they were illegal?

Here's a clue. Typically, a member of a state's congress is allocated a certain amount of money out of a general revenue fund to distribute back into their communities in the form of grants for those projects that are considered worthy. Senators and Congressmen typically don't go out and research what projects need funds, however. What happens is that people petition their representatives for those funds. People who know how grant systems work know how to ask for the money, which is simply to make a proposal for it. Of course, sometimes there is competition for the funds, or there isn't enough money to cover the entire proposal in a particular grant, in which case the person seeking the grant has to provide matching funds.

So I ask you, what's the big deal? The man applied for a grant and the money was granted for his project. It isn't like the money went into his pocket fer christ's sake.

    Favorite    Flag as abusive Posted 10:38 PM on 04/27/2008
- KQuarksSuperCollider See Profile I'm a Fan of KQuarksSuperCollider

Bill gets half a billion dollars to build his sanctuary to himself. Bill gets six figures for giving a speech. Hillary gets a pardon for her brother's drug dealer client through Bill. Now these are scandals. Obama wrote a letter and was paid legal consulting fees. Big deal.

    Favorite    Flag as abusive Posted 10:31 PM on 04/27/2008
- JoInCalifornia See Profile I'm a Fan of JoInCalifornia

I'm already losing faith in Senator Obama (well let's say just troubled by what I see as inconsistencies in his words as compared to his actions) so of course I may be biased.

But I will tell you one thing that I know. Attorneys in law firms never get to keep an entire fee received from a client. The firm always takes a percentage. That's just the way it is. So this is really at best, very unusual.

    Favorite    Flag as abusive Posted 09:55 PM on 04/27/2008
- Fotios See Profile I'm a Fan of Fotios

So, Jo, it looks like you really did your homework. What law firm was Barack working for at that time and are you sure he kept that entire fee? Also, I have reason to believe Hillary is paying you to write these comments.

See, it doesn't feel good when people make accusations with no basis. So, you are really at best, very unusual.

    Favorite    Flag as abusive Posted 01:38 AM on 04/28/2008
- Sparklez See Profile I'm a Fan of Sparklez

You never had faith in him and you never liked him

Clinton supporters will be hers

Obama supporters will be his

So dont try and fake the funk like you liked him at one point.

You might want to worry about Clinton ahd her issues with Peter Paul

    Favorite    Flag as abusive Posted 12:04 AM on 04/28/2008
- WomanInOrangeSweater See Profile I'm a Fan of WomanInOrangeSweater

I'm more worried about the fact that all three candidates are US senators and all three are too damn busy arguing about BS to do the jobs they're being paid to do. Why should I trust any of them to do any better as President? One is talking about a new kind of politics while practicing the old. one is touting whatever word sells best at the moment, and the other is selling himself as a straighttalker which is a lie in itself. Now what's that you were saying about Peter Paul and pingpong?

    Favorite    Flag as abusive Posted 01:01 PM on 04/28/2008
- Krikkit See Profile I'm a Fan of Krikkit

The best thing all of us could do for our country is to STEP AWAY FROM THE MSM. It's killing our democracy.

    Favorite    Flag as abusive Posted 10:40 PM on 04/27/2008
- ltfcrazy See Profile I'm a Fan of ltfcrazy

God how I wish the TV was nothing but a big laugh box with no attempt at seriousness. You can't use honest journalism to make money. Only PBS should be allowed to report on anything.

    Favorite    Flag as abusive Posted 02:22 AM on 04/28/2008
- KQuarksSuperCollider See Profile I'm a Fan of KQuarksSuperCollider

Please Hillary won't even release her earmarks. This is very common stuff. Nothing like renting the Lincoln bedroom.

    Favorite    Flag as abusive Posted 10:28 PM on 04/27/2008
- TinaFreeman See Profile I'm a Fan of TinaFreeman

Get a grip, people. He wrote a single letter to vouch for these guys in applying for a grant. A single letter. He didn't have any vote on whether it would be approved, and he didn't write the check.

If Obama is so good that he could cause GROUPS of people to take action for his constituent not once, but over several years, all based on a SINGLE LETTER, this guy is DAMN GOOD and we better elect him immediately! That must have been one helluva letter!

Or, there's the possibility that the subsequent grants were given because the idea was actually successful, and that the people that approved it actually believed they were doing the right thing....

    Favorite    Flag as abusive Posted 09:40 PM on 04/27/2008
- hwebb54 See Profile I'm a Fan of hwebb54

Obama is now, officially, a normal politician. When he asked Hillary if she thought that the people that were supporting him were just "delusional" he was right. They were just misinformed.

Hillary will be the nominee now.

    Favorite    Flag as abusive Posted 09:13 PM on 04/27/2008
- ltfcrazy See Profile I'm a Fan of ltfcrazy

Out of Chuck Heston's cold dead hands she'll take that nomination.

    Favorite    Flag as abusive Posted 02:25 AM on 04/28/2008
- hwebb54 See Profile I'm a Fan of hwebb54

Why is this not a headline story??? I know you want to protect Obama here at "Obama headquarters" but come on. This is HUGE.

    Favorite    Flag as abusive Posted 09:10 PM on 04/27/2008
- Sparklez See Profile I'm a Fan of Sparklez

Lol

Its not huge

What was huge was when Hillary said screw the white working class but criticized Obama

It would be huge if he didnt disclose it or if the person wasnt a constituent of his asking for a grant from the state as he has every right to do. Senators can write letters all day, doesnt mean that the grant is granted. Im sure he wrote many letters for many constituents. Thats how the Senate works

I think any unbiased person would agree that this is not big at all

But y'all keep on making something out of nothing

    Favorite    Flag as abusive Posted 11:54 PM on 04/27/2008
- Krikkit See Profile I'm a Fan of Krikkit

It's not huge. It's a red herring. Tell you what. Try this experiment. Find out who your local representative is and then call him/her. Tell him/her that you have a project (make up something plausible) that you would like to find funding for and ask him/her how to go about applying for a grant. You may be entirely surprised at just how easy it is. Then run around the house three times and say "This is HUGE!" while fantasizing that your representative is being crucified in the media over it while campaigning for high office.

    Favorite    Flag as abusive Posted 10:45 PM on 04/27/2008
- rollingdivision See Profile I'm a Fan of rollingdivision

$8,000 a month retainer was a nice way of giving Obama $96,000 a year whether he did any work of not. That is called buying a politician. Don't we worry when a politician becomes so reliant on a private individual for their very existence? Doesn't it make them more susceptible to threats or intimidation? Isn't there an appearance of impropriety or conflict of interest? Well Obama must have thought so because he failed to report essentially the sole source of his outside income on an Illinois state ethics report.

If he only had one source of income, then the only relevant information on the form is the name of the source. Maybe his "custom" wasn't all that forthcoming in the first place. If Obama had been paid for his actual work on an hourly basis no problem, but the $8,000 a month with no work required is unethical.

    Favorite    Flag as abusive Posted 09:02 PM on 04/27/2008
- NoSnobama See Profile I'm a Fan of NoSnobama

Boy oh boy oh boy...I bet there's a LOT more stories like this one to come! The criminal truth is starting to leak about about the media darling Obama. Somebody open the floodgates please. America deserves to know the truth about this guy!!!

    Favorite    Flag as abusive Posted 08:54 PM on 04/27/2008
- rwe See Profile I'm a Fan of rwe

Damn, and McCain got a plane ride from his wife.....Chicago, Cook County, Illinois...most corrupt , highest taxed , 30 = highschool kids killed , Rezkow,Farrakhan,Wright? No record of crediblility in legislature.. No wonder McCain does not need to campaign that hard.

    Favorite    Flag as abusive Posted 08:43 PM on 04/27/2008
- steveflos See Profile I'm a Fan of steveflos

First Rezko, now Blackwell. Who else will pop up in the weeks to come? Obama promised change, but all I see is corruption, nepotism, favors, deals. I hope that black voters realize that they have been conned.

    Favorite    Flag as abusive Posted 07:54 PM on 04/27/2008
- srtjsrtj See Profile I'm a Fan of srtjsrtj

Corruption, please try something the man made $1,000. Let's try Pork spending and ask Sen. Clinton why she won't release her $380 Million Dollars in Pork that she just received. Interesting Sen. Obama revealed his sometime ago. Could it be because she tried to get Congress to comit Millions to some WOOD STOCK Senselessness and they shut her down and KILLED the BILL?

    Favorite    Flag as abusive Posted 07:59 PM on 04/27/2008
- jtown See Profile I'm a Fan of jtown

This is a bullshit story, report on somtheing that matters

    Favorite    Flag as abusive Posted 07:33 PM on 04/27/2008
- NoSnobama See Profile I'm a Fan of NoSnobama

Funny how it is always bs when it is something you don't want to hear about your darling Obama. This is nothing compared to what the Republicans have in their arsenal ready to unleash on Obama should the Dems make the tragic mistake of crowning him as the nominee. Change you can believe in? What a crock of sh*t! As the Rezko trial continues, more and more news of his corrupt ties are coming out. Let's hope the Dems wake up soon and realize this guy will lose us the White House if he gets the nomination!

    Favorite    Flag as abusive Posted 09:06 PM on 04/27/2008