Whitewater v. Rezko: The Battle of the Billing Records
It's baaack! Just when you thought it was safe, we are back at Whitewater. If Hillary and her attack pack want to play the Rezko card, let's all strap on some waders, because now we're forced to wade through the Whitewater mud again.
Clinton claimed Obama represented Tony Rezko. Obama never represented Rezko. Never. Ever.
According to the Washington Post:
"William Miceli, Obama's supervisor at the law firm, said the firm represented the Woodlawn Preservation and Investment Corp., a nonprofit group that redeveloped a run-down property on Chicago's South Side with Rezko. He called Clinton's assertion that Obama represented Rezko in a slum landlord business 'categorically untrue. He was a very junior lawyer at the time, who was given responsibility for basic due diligence, document review,' said Miceli, adding that Obama did what he was told by the firm. According to Miceli, that was the only time Obama worked on a Rezko-related project while at the law firm...But investigations by Chicago newspapers have not produced evidence that he represented Rezko in a slum landlord business. What has been demonstrated so far is that he did some due diligence legal work for a joint venture between Rezko and a Chicago nonprofit. Two Pinocchios for Clinton."
FactCheck.org says "Obama was associated with a law firm that represented the community groups working with Rezko on several deals. There's no evidence that Obama spent much time on them, and he never represented Rezko directly. So it was wrong for Clinton to say he was 'representing ... Rezko.' That's untrue."
Obama did work for non-profit community groups associated with Rezko's firm. The Chicago Tribune says:
"Obama angrily rejected Clinton's accusation at Monday's Democratic debate. And a Tribune review of land and court documents and law firm files as well as correspondence and other records related to Obama's eight years as an Illinois state lawmaker supports his contention that he did not directly represent Rezko's development firm. Instead, the records show, he represented non-profit community groups that partnered with Rezko's firm." (Registration Required)
In fact, Obama had "unusually frank ethics disclosure reports" and Obama represented the non-profit partner:
"At the Tribune's request, Cook County Circuit Court Chief Judge Timothy Evans produced a list of all 260 civil and criminal cases in which the firm filed appearances, and the Tribune separately examined 1990s lawsuits that Rezmar Corp. listed in applications for government grants. The paper also examined files from the Illinois Housing Development Authority and the city housing department, as well as the hundreds of clients Obama listed in the unusually frank ethics disclosure reports he filed as a state senator from December 1995 through April 2004. Those and other records disclosed five instances in which Obama did legal work for ventures that included Rezmar Corp. The case of City of Chicago vs. Central Woodlawn Limited Partnership is one example. In 1992, that community group partnered with Rezmar Corp. to rehab the former slum apartment building at 6107-6115 S. Ellis Ave. As work was ongoing, city officials sued the developers, alleging 16 serious code violations at the property, including a dangerously dilapidated porch. Obama and a co-counsel filed appearances in February 1994, but the court records show they appeared on behalf of Central Woodlawn, Rezko's non-profit partner, not Rezko or his company."
Guess what? According to billing records, Obama worked for the non-profit for 5 - 7 hours mainly filling out incorporation papers for the group. Oh, the humanity! That's a little less than one day of "billable" work for many law firms for associates. Less than one day!
Speaking of billing records! Billing records bring us back to Whitewater and the Rose Law Firm. While Obama spent less than one day working for a non-profit, let's take a look at Hillary "The Inevitable" Esq.'s legal career. What's good for the gander is good for the goose.
Let's just look at her law firm "experience".
"The ultimate establishment law firm" the Rose law firm is oldest law firm west of the Mississippi River and the third-oldest in the United States.
The Rose firm hired Hillary after Bill Clinton became the attorney general of Arkansas, then she made partner after he became governor. What a coinkydink, huh? Along with the coinkydink that the State of Arkansas was one the Rose Law firm's biggest clients.
Putting aside her infamous "Let Them Eat Rat" case:
It didn't hurt that Hillary was the wife of a sitting state attorney general. Hillary insisted that "steps have been taken" to ensure that no conflict of interest would take place, but the fact remained that Rose represented the most powerful interests in the region - from real estate and retail to banking and manufacturing. Rose counted legislators, congressmen, state supreme court justices -- not to mention a former member of the United States Senate - among its partners. Yet partner Herb Rule had to concede that, as the influential wife of a future governor and President, Hillary stood out as "a prize catch."
Plus she was a real rainmaker!
Hillary, for one, thought the arrangement was just fine. In 1977, President Carter rewarded Hillary for her help in Indiana [where she had worked on his campaign] with an appointment to the Legal Services Corporation (LSC), a federally funded nonprofit organization established by Congress. When she was asked during her Senate confirmation hearings whether the Rose Law Firm would recuse itself from cases involving organizations that received money from the LSC, Hillary waffled. In the end, she would not say yes. While she continued to rack up hefty fees at her Arkansas law firm, Hillary oversaw an LSC budget that swelled from $90 million to $321 million--money that was used, among other things, to try to defeat California's tax-cutting Proposition 9, get Medicare to pay for a welfare recipient's sex-change operation, and support legal efforts in Michigan to give standing to "Black English" (Ebonics) as a separate language. In the final days of the Carter administration, the LSC would frantically dole out $260 million in taxpayer funds to various liberal causes in an effort to keep the money out of the hands of incoming Reagan appointees. The General Accounting Office would issue a report on the LSC under Hillary Rodham and conclude that "many of the people associated with it are uniquely reprehensible."
I guess it takes a President to sign an Ebonics bill into law!
But back to the Hillary's billing records. According to the "vast-right wing conspiracy" group PBS, here's what her billing records reveal:
Ms. Clinton and her attorney have stated publicly that the billing records confirm that, as an attorney at the Rose Firm in the mid-80's, she was not significantly involved in the representation of Jim McDougal's savings and loan, Madison Guaranty. According to the Rose records, Hillary Clinton billed Madison for 60 hours of work over a 15 month period. Ms. Clinton's attorney argues that this represents a de minimus amount of work and includes billings for work performed by Rose Finn lawyers working for Hillary Clinton at the time.
Got that? Hillary's own lawyer says 60 hours over 15 months is a de minimus amount of work. De minimus is lawyer speak for bupkis. Makes you wonder how he'd describe 5 - 7 hours?
But Whitewater investigators believe that the billing records show significant representation. They argue that the records prove that Ms. Clinton was not only directly involved in the representation of Madison, but more specifically, in providing legal work on the fraudulent Castle Grande land deal. In particular, investigators zeroed in on the individual billings, including a dozen calls and meetings with Seth Ward, the individual whom regulators determined was a "straw man" in the Castle Grande deal. These contacts occurred during a period of time, including early 1986, that Ward was engaged in efforts to obtain sales commissions from McDougal that would later tip regulators to illegalities at Castle Grande. Of particular interest to investigators has been Ms. Clinton's work on an option agreement drafted to provide Seth Ward with some $300,000 in commissions on the re-sale of his holdings at Castle Grande. Regulators determined that the option agreement was principally designed to further obfuscate and hide the fraudulent nature of the underlying Castle Grande transactions. The records also identified what investigators believe was a significant phone call on April 7, 1986 between Ms. Clinton and then-Madison loan officer Don Denton. When questioned by investigators about the call, Denton remembered speaking with Ms. Clinton about efforts to provide Ward with his commissions. According to their conversation, Denton believes that Ms.Clinton was familiar with the nature of the transaction -- again, a transaction that investigators believe was intended to deceive financial regulators.
And just where were those now infamous billing records?! Wait for it.
Investigators have examined the Rose billing records not only to determine the role Hillary Clinton may have played in the Castle Grande transactions, but more significantly to ascertain her role in their mysterious disappearance and subsequent reappearance. If someone had knowledge or possession of the billing records and knew that they were the subject of Federal investigative subpoenas, their failure to divulge or turn over the records could be the basis for criminal charges -- the obstruction of justice. The billing records found in Hillary Clinton's book room were a copy of an original version printed out from the Rose Firm computer in 1992, when the computer file itself was deleted. Webb Hubbell has testified that he recalls reviewing a copy of the billing records in response to press inquiries during the 1992 Presidential campaign. Hubbell says that he then passed the records on to Vince Foster who was, as far as Hubbell knows, the last person to have the records. Investigators believe the book room copy was indeed Vince Foster's. The copy contains notations, in red ink, that are Vince Foster's handwriting. These notations appear to be directed toward Hillary Clinton, including questions about some of the individual billings. Investigators believe this suggests that, at some point, this copy was passed from Vince Foster to Hillary Clinton for her review. In addition, investigators had the FBI conduct fingerprint analysis of the billing records. Of significance, the prints of Vince Foster and Hillary Clinton were found. The Senate Whitewater Committee concluded that Hillary Clinton was the person most likely to have put the billing records in her book room, or know how they got there. The Independent Counsel continues to investigate Ms. Clinton's involvement in handling the records. For her part, Hillary Clinton has said that she has no idea how the billing records came to be in her book room.
Want to learn more about the friends of the "tested and vetted" Billary? With friends like these, who needs enemies?
Remember the old adage that when pointing one finger at someone, you're pointing three back at yourself?
Remember that Whitewater ultimately cost the taxpayers $60 million to investigate. Plus the Clinton's tried and failed to stick us with their legal fees!
Do we really want to go back to the future? Personally, I'd like to go Barack to the future.
Comments for this post are now closed
Want to reply to a comment? Hint: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to
The problem is not that the Clinton's had their Whitewater, so it's OK for Obama to have his Rezko....
It's why is this man preaching about how he is "a different type of politician" - when he's clearly engaging in some the most POLITICIAN LIKE behavior???
Any politician who PRETENDS to NOT be a politician, and then it is shown they are just the same old politician is a charlatan!!!
Karen Russell:
"It's baaack! Just when you thought it was safe, we are back at Whitewater. If Hillary and her attack pack want to play the Rezko card, let's all strap on some waders, because now we're forced to wade through the Whitewater mud again."
Whereas you seem to be delighted at the prospect, I don't feel myself "forced to wade through the Whitewater mud" in the slightest.
Instread I would be pleased to get some satisfactory answers from Mr. Obama about his relationship with Mr. Rezko. That is all.
If you think you can drown Mr. Rezko in Whitewater, you are mistaken.
When will Mr. Obama clarify this issue? Before Super Tuesday or after? After he becomes the Democratic candidate and is asked about it by the Republicans? After he is inaugurated as President and is investigated for it while in the White House? How long does he consider he should wait?
http://www
From the Chicago Sun-Times
'Boneheaded' deal in 2005
Since announcing his presidential bid, Obama has faced repeated questions about his 17-year relationship with Rezko, one of his earliest political contributors, who has raised hundreds of thousands of dollars for Obama.
Rezko backed Obama's election to the Illinois Senate in 1996, his successful re-election bids and his 2004 election to the U.S. Senate.
Two years ago, the two men were involved in a real estate deal that Obama later apologized for, calling it "boneheaded" and a "mistake" because the transaction occurred while Rezko was widely known to be under federal investigation. Rezko's wife paid full price for a vacant lot in Chicago's historic Kenwood district on the same day Obama bought the mansion next door from the same property owner for $300,000 below the asking price. Rezko's wife subsequently sold a sliver of the land to Obama.
http://www
My comment: "Boneheaded deal"? It has the odour of pure and simple graft. As such, and as Mr. Obama represents himself as being of a breed of politician quite apart from such things, I would suggest that he clarify his relationship with Mr. Rezko sooner rather than later.
Lets not forget Hillarys experience in cattle trading. The deal was arranged in the following way. All Hillary had to do was put $1,000 of her own money into a block of cattle futures at a time when her husband, then the attorney general, had a thirty point lead for the governorship. How did Hillary make out?
From her initial investment of $1,000, she came away with $99,537. Among the community of experts, there is general agreement that between 75 percent and 90 percent of commodity players lose. And no one turns $1,000 into $100,000. “The average retail customer has about as much chance of that kind of success as I have of driving to Hawaii,” one Chicago-based investment advisor noted.
At one point in the trading, Hillary was $60,000 in the hole, with less than $40,000 in her account. Typically, an investor would be asked to pay the margin. Hillary was not, and she held on to the commodities until she hit
By way of comparison, had Hillary instead invested $1,000 in the first offering of Microsoft stock in 1986, she would have made $35,839 by March 1994. The premier technology investment of our times, therefore, pales in comparison to what she had made on the world’s oldest commodity: livestock. Hillary’s cattle future investment gave her a 9,987 percent profit.43 Later, when asked of her incredible success as a novice in the tough world of commodities trading, Hillary denied any preferential treatment with the illuminating statement: “I was lucky.”
It is pretty obvious that Hillary had something better than luck. She had well-placed friends who wanted her to have $100,000. The likelihood of such a return on such an investment was close to lottery odds, twenty-four chances in a million.44 This was in a decade in which no speculator made more than $400 profit a day with one contract of cattle futures. Yet Hillary managed to make $5,300 a day. Such a return would have required her holding thirteen contracts, involving 232 tons of beef with a value of $280,000.
Nice try Karen...I could really give a hoot about the lawyer/billing hours....I care about the house deal..BIG TIME!!!
One has to wonder why if Hillary is taking credit for her experience during the Clinton presidency, the pardons her brothers pushed hasn't come up as a campaign issue. It will come up in the general election.
Anthony Rodham (Hillarys brother), received $107,000 in fraudulent loans from United Shows International as compensation for securing a presidential pardon for Vonna Jo Gregory in 2000 from then-President Clinton. After the pardon "Anthony" never paid back the loan.
Hillary Clinton's brother Hugh Rodham , was paid approximately $200,000 from Almon Glenn Braswell, whom President Clinton pardoned for mail fraud and perjury, as was Carlos Vignali, whose sentence for cocaine trafficking was commuted. News of his involvement in the pardon controversy prompted an outrage in Washington, D.C.
If Hillary wants the credit for the Clinton presidency she should also be willing to answer questions about it.
You mean the investigation that tured up nothing? That Whitewater?
Now, Redzco has been a fundraiser for Obama for over 15 years.
You honestly are trying to even compare the two?
What a joke.
Oh, and don't forget to ask about the tax angle, too, some city and state revenue comes from property taxes, big pot o gold, there, just ask D.C. tax lady....AN
Questions for all candidates: Are you now, or have you ever been, a real estate agent? Are you somehow involved in the stock market with real estate holdings, mortgages, or mortgage-b
Any family members so involved or employed?
Ms/Mrs Russell.
Great post. I'm happy that someone finally post an article that are not PRO Clinton's, and tell the truth. I remember that part of history. We will be back to those times if Bill and Hillary Clinton become president.
Whitewater! After millions spent chasing that pipedream by the Repugs, we throw that up again. Please. Just let Obama answer the charge about Rezko and lets move on. If Hillary was wrong, I am quite sure the rabid press will make sure the whole bloody world knows about it. Because for some reason this campaign, Barack is "off-limits". The man needs to toughen up if he wants to win the general election, he mostly comes across as a much bigger baby than Billary.
Thank you so much for telling the truth, Karen. My feeling is the Clintons are so arrogant that they're oblivious to their failings. Hillary opened this can of worms -- I say, let's go fishing!
I'm afraid that cattle futures, Whitewater, Marc Rich and two dozen other "shady" connections involving the Clintons won't alter the basic premise: Obama is running as a different sort of politician, he's clean, he has nothing to hide. Hope. Change. This puts that in question.
So I think Obama still has to explain his friendship with Rezko. Now that Hillary-- in about as dirty as dirty can get-- brought up the mess.
Honestly, I can't stand her. And the funny thing is, last November or so I was thinking it would be pretty cool if she became the first woman president.
What worried me was what might happen if Obama got within 5% of Hillary in the polls-- can she really be that capable of doing anything to win?
Yes she can.
So now that she has smeared Obama he needs to clear his name. Say he was friends with Rezko but didn't do him favors. Well one favor: the kid of someone who works with Rezko got a summer internship on Obama's recommendation-- or something. It's complicated.
Thanks, Hillary, for bringing up this mess. Geez, he didn't do anything illegal, but just put a doubt in people's heads about him being anything like the usual dirty politician (you?) and, yeah, the mob will turn against him.
Ah, Clinton politics. Is it 2016 yet?
Frankly it pisses me off that Obama bought a muti-million dollar house before he bothered to pay off his student loans.
However I'll take him or Edwards over that lying scum that he's running against.
Lie # 150: Clinton claimed Obama represented Tony Rezko.
Truth # 150: Obama never represented Rezko. Never! Ever!
Loading comments…
Posted January 24, 2008 | 10:45 AM (EST)