Obama Helped Supporters Get Millions in Illinois State Business

May 15, 2008— -- In a speech to the Urban League last July, Sen. Barack Obama, D-Ill., boasted of his efforts in 2001 to help a handful of African American-owned investment firms in Chicago get a larger share of business with Illinois state pension funds. "And in six months, they got about a half-billion dollars' worth of business simply on their excellence," Obama said.

What he did not say in his speech was that the owner of one of the investment firms, John Rogers of Ariel Capital, is a principal campaign fundraiser. Nor did he reveal that employees of the firms he helped have since contributed to or helped to raise more than $765,000 for his campaigns, according to campaign documents. Nor did he mention that two of the firms have allowed him to use their private jets. Nor did he mention that two of the firms have since been dismissed by the state pension fund for "underperformance."

An Obama spokesperson, Ben Labolt, said it was "preposterous" to suggest Obama's efforts for the firms were linked to campaign donations. "It should come as no surprise that as a prominent Illinois state senator who had a history of civic activity in the city, Obama had long-standing relationships with a number of Chicago's African American business leaders or that those business leaders would have found common cause to support his campaigns over the years," said LaBolt.

Following Obama's efforts, the Illinois Teachers' Retirement System gave Ariel Capital $112.5 million to manage, and added hundreds of millions more over the next few years.

In 2006, the teachers' fund took its money back out, citing Ariel's "underperformance." Ariel said the hot stock market of 2006 made its funds' growth look modest, guided as it was by the firm's conservative buy-and-hold philosophy. Ariel is positively rated by several investment experts.

Now, Rogers is an Illinois finance co-chairman for Obama's presidential campaign, having raised more than $200,000 for the campaign. Ariel employees have given nearly $70,000 to Obama's White House effort -- for a total of more than $130,000 to Obama's political career since 2001, when the politician went to bat for the company. The total includes $8,100 donated by Ariel Capital president Mellody Hobson, an ABC News financial contributor. Hobson is listed by the Obama campaign as a "bundler" who has raised between $50,000 and $100,000 for Obama's presidential campaign.