Myth #1: Obama did legal work for Rezko
Claim: Hillary Clinton during a debate denounced Obama for "representing your contributor, Rezko, in his slum landlord business in inner city Chicago."
The truth: According to Factcheck.org, "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."
Myth #2: Obama knew Rezko was a slumlord
Claim: The Chicago Sun-Times reported that in 1997, Rezko’s company failed to turn the heat back on in one of his buildings, while giving $1,000 to Obama’s campaign fund.
The truth: There’s no evidence that Obama knew about problems with Rezko’s buildings. A state senator doesn’t deal with tenant complaints, and the Chicago newspapers never reported on Rezko’s problems as a landlord until after he was indicted. According to the Chicago Tribune, "in the years before 2005, Rezko enjoyed a reputation in Illinois as an up-and-coming, even enlightened entrepreneur with a strong interest in the risky low-income and affordable housing markets."
More:
http://www.dailykos.com/story/2008/1/29/171056/015/838/445627