Clinton Scoffs at Obama's 'No Inkling' of Rezko Woes

Jan. 23, 2008— -- Hillary Clinton's campaign unleashed what may be its toughest attack yet on Barack Obama, ripping into her Democratic rival for trying to distance himself from an indicted Chicago real estate agent by claiming "nobody had an inkling" he was suspected of illegal activities.

The real estate agent, Antoin "Tony" Rezko, is under federal indictment for fraud and extortion. Rezko has long been a contributor to Obama's political campaigns and as recently as June 2005 Obama and Rezko did a real estate deal together.

The Rezko connection has dogged Obama as the increasingly bitter Democratic fight for the presidential nomination moves into the crucial state of South Carolina this week.

Sen. Obama, D-Ill, went on "Good Morning America" this morning and tried to minimize his relationship with Rezko.

"The facts are this: This is somebody who was active in politics in Illinois, who I knew. Nobody had any indications that he was engaging in wrongdoing," Obama told Diane Sawyer on "Good Morning America."

"We have returned any money that we know was associated to Mr. Rezko, and that is something that, if there's additional information that we don't know about, we'd be happy to return the money," he said.

The Clinton campaign quickly pounced. Calling Rezko Obama's "political patron," campaign spokesman Phil Singer issued a release stating, "Sen. Obama has repeatedly tried to minimize the closeness of their relationship. This morning was no different."

Singer said Obama "misrepresented basic facts" and zeroed in on Obama's claim that "nobody had an inkling" that Rezko was under investigation for fraud and for extorting kickbacks from companies doing business with the Illinois Teachers Retirement System Board and the Illinois Health Facilities Planning Board.

The Clinton camp cited four stories in newspapers from Obama's hometown of Chicago between July 2004 and September 2005 detailing the federal investigation into Rezko's alleged activities.

The Clinton camp also cited statements from two Chicago-area civic watchdog groups this week, the Illinois Campaign for Political Reform and the Better Government Association of Chicago, who claimed Rezko's legal troubles were well-known in Chicago political circles.