The judge said she became concerned after learning, among other things, that Rezko had received US$3.5 million from a company in Lebanon after claiming he did not have any income. -- PHOTO: AP

The federal judge revoked the US$2 million (S$2.84) bail saying she feared Antoin 'Tony' Rezko, a developer and fast food magnate, could be a flight risk.

The judge said she became concerned after learning, among other things, that Rezko had received US$3.5 million from a company in Lebanon after claiming he did not have any income.

US District Court Judge Amy J. St. Eve remanded Rezko into the custody of the US Marshall. At an afternoon hearing, the judge ordered him into custody and scheduled a Tuesday hearing where Rezko's attorneys will attempt to get bond reinstated.

Some of the people who put up property in Rezko's name also are renting out or trying to sell the property, according to prosecutors, raising concerns there may not be enough collateral to secure Rezko's bond.

Rezko, who was arrested at his suburban Chicago home Monday morning, has pleaded not guilty to charges of fraud, attempted extortion and money laundering. He is scheduled to stand trial on Feb 25.

Earlier Monday, Rezko attorney Mr Joseph Duffy said he needed to get more information about the allegations before commenting.

Mr Obama, the Democratic presidential candidate and senator from Illinois, has said he had no indication of problems with Rezko when he accepted thousands of dollars in campaign contributions. When prosecutors unsealed their charges against Rezko in 2006, Mr Obama gave US$11,500 in Rezko contributions to charities.

Obama distanced himself from Rezko
Mr Obama has since sought to distance himself from Rezko, even as Mrs Clinton invoked Rezko's name and his 'slum lord business' during a recent debate. His campaign declined to comment on Rezko's arrest.

Earlier this month, Mr Obama gave to charity more than US$40,000 in past political contributions from seven individuals with ties to Rezko. The decision to donate the money contributed to Mr Obama's House and Senate campaigns - but not his current presidential bid - came after a published report that Mr Obama is the unnamed 'political candidate' in one paragraph of a 78-page prosecution document that outlines the case against Rezko.

Mr Obama also has had to answer questions about how Rezko became involved in the purchase of the Obama family home as well as other ties to Rezko that go back more than 15 years.

Mr Obama says he did five or six hours of work in the early 1990s for community groups that partnered with Rezko in apartment house development projects. Mr Obama says he never represented Rezko in those deals, but his law firm at the time did represent Rezko's real estate development company, Rezmar.

Mr Obama has been accused of no wrongdoing involving Rezko or anyone else.

Rezko also has been one of Illinois Gov Rod Blagojevich's leading fundraisers.

Rezko charged
Rezko is charged in a 24-count indictment with pressuring businesses seeking work before two state regulatory boards to make campaign contributions and payoffs.

Once the trial, which is expected to last two to three months, is over, Rezko still will face federal charges alleging he swindled General Electric Capital Corp out of US$10 million in connection with the sale of two pizza restaurant chains.

Federal prosecutors say Rezko was deceptive in leading St. Eve to grant bond by claiming in April 2007 that he had no income of his own and was instead living off the generosity of friends and relatives.

Assistant US Attorney Reid J. Schar said US$3.5 million from a Lebanon-based firm had been distributed to various funds and individuals, indicating that Rezko had more money than he had led the court to believe.

'This defendant has played a shell game and I think misled the court about what his assets are,' Mr Schar said.

Defence attorney Joseph Duffy said 'there isn't anything that suggests flight.' He said Rezko, a US citizen born in Syria, returned from overseas to face the charges against him. -- AP