Obama denies there was anything unusual about the price disparity. He says the price on the house was dropped because it had been on the market for some time but that the price for the adjacent land remained high because there was another offer.
Obama then expanded his property by buying a strip of the Rezko land for $104,5000, which the senator maintains was a fair market price.
Obama later told the Chicago Sun-Times, "It was a mistake to have been engaged with him at all in this or any other personal business dealing that would allow him, or anyone else, to believe he had done me a favor."
Obama had known Rezko long before the house deal, calling him a "friend."
An ABC News review of campaign records shows Rezko, and people connected to him, contributed more than $120,000 to Obama's 2004 campaign for the U.S. Senate, much of it at a time when Rezko was the target of an FBI investigation.
"It surprised me that late in the game he [Obama] continued to take contributions from somebody who was under a rather dark cloud in the state," said Cynthia Canary of the Illinois Campaign for Political Reform, a group that has worked closely with Obama and supported his legislative efforts.
In the wake of the Rezko indictment, Obama says he has given $44,000 of the Rezko-connected money to charity.
There is no mention of Obama in the Rezko indictment. Federal authorities say the investigation is focused on Illinois Gov. Rod Blagojevich, identified in court filings as Public Figure A.
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