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(s)Elections See other (s)Elections Articles Title: Obama Fundraiser Tony Rezko Is Declared Bankrupt Aug. 29 (Bloomberg) -- Antoin ``Tony'' Rezko, the former fundraiser for Democratic Party presidential nominee Barack Obama who was convicted of fraud, was declared bankrupt by a judge and ordered to face creditors who say he owes at least $23.1 million. U.S. Bankruptcy Judge Carol Doyle in Chicago denied a request by Rezko's lawyer to throw out the petition filed in May by three creditors. Doyle declared Rezko bankrupt under Chapter 7 of federal bankruptcy laws, where a trustee is appointed automatically to liquidate assets and pay creditors. ``The motion to dismiss the involuntary petition is denied,'' Doyle said in a hand-written one-page order on Aug. 26. She rejected defense claims the petition was filed in bad faith and that alleged debts are being disputed in other courts. Rezko raised about $250,000 for Obama's U.S. and Illinois senate campaigns, much of which was later donated to charity, his campaign has said. Prosecutors said he also raised at least $1.4 million for Illinois Governor Rod Blagojevich. He also collected money for U.S. President George W. Bush. Prosecutors accused none of the politicians of wrongdoing. A franchise restaurant operator and low-income housing developer, Rezko was accused of plotting with a Chicago-area businessman who served on Illinois pension plan and hospital construction boards to reap millions of dollars in payments from firms seeking state investments and contracts. Fraud Conviction Rezko was convicted in June of mail and wire fraud, money laundering and abetting bribery. He will be sentenced on Oct. 28 and is being held at the Metropolitan Correctional Center in Chicago. The largest petitioning creditor, Semir Sirazi, claims he is owed $16.7 million. During the criminal trial, Sirazi testified that Rezko owed him much more money, and that he ultimately received payment through the business of an alleged co-schemer. Rezko's bankruptcy lawyer, Howard Adelman, didn't immediately return a call seeking comment. The bankruptcy case is In re Antoin S. Rezko, 08B11591, in the Northern District of Illinois (Chicago). The criminal case is U.S. v. Levine, 05cr691, in the Northern District of Illinois (Chicago).
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