Photo with insider puts Clinton on spot

Hillary Clinton's attempt to tar Barack Obama over his ties to an indicted fundraiser threatened to backfire on the eve of South Carolina's crucial primary.

A photograph surfaced early Friday showing Tony Rezko -- who was indicted last year in a state corruption probe -- standing with a smiling Hillary and Bill Clinton. The photo appears to be from a fundraiser, which usually involve rapid-fire shots with supporters.

When confronted with the photo on a TV show, Hillary Clinton said she didn't recall it.

"I don't know the man; I wouldn't know him if he walked in the door. I don't have a 17-year relationship with him," Hillary Clinton said on the NBC's "Today Show," referring to Obama's long relationship with Rezko.

The picture was not dated, but looks to be from the Clintons' early White House years.

Hillary Clinton accused Obama at a Democratic debate Monday of once representing Rezko, who she described as a "slum landlord." Obama said he represented a nonprofit organization that partnered with Rezko on a housing project. He said he only worked five hours on the case.

Rezko is facing federal charges for allegedly trading state business for campaign contributions under the administration of Gov. Rod Blagojevich.

Rezko has been a significant fundraiser for numerous campaigns. He has also tried to make a fortune with restaurants at state facilities and housing projects backed by public financing.

Obama has divested about $85,000 in Rezko-related contributions. But the U.S. senator from Illinois also had a real estate deal with Rezko, which Obama later called "boneheaded."