Tag Archives: FDIC lawsuit

Obama corruption ties slowly grind in wheels of Justice, Rezko Mutual Bank Mahajans, Kenneth J Conner whistleblower, FDIC lawsuit, Blagojevich prosecution

Obama corruption ties slowly grind in wheels of Justice, Rezko Mutual Bank Mahajans, Kenneth J Conner whistleblower, FDIC lawsuit, Blagojevich prosecution

“Why wasn’t Rod Blagojevich, Governor of IL, prosecuted before Tony Rezko, a businessman?”…Citizen Wells

“Why was Tony Rezko’s sentencing delayed?”…Citizen Wells

“Why did Mutual Bank fire whistleblower Kenneth J Connor after he
challenged the appraisal on the land purchased by Rita Rezko, just
prior to the land sale to Obama?”…Citizen Wells

“Where did Rita Rezko get the money to buy the lot she sold to Barack and Michelle Obama?”…Citizen Wells

The Obama camp, with the full cooperation of the mainstream media and US Justice Dept., has done their best to distance Obama from his numerous close corruption ties in Chicago and Illinois. The delayed and dragged out prosecution of Rod Blagojevich with his mutual ties to Tony Rezko, the failure to call Rezko as a witness and the dropping of counts against Blagojevich that are most damning for Obama, is one good example.

With the best attempts to divert attention away from Obama’s corrupt past, the Ghosts of Obama’s Christmas past continue to linger.

From an article written by truthteller and presented on NoQuarter USA on October 12, 2008.

“”Because I tend to rely on evidence and not on hearsay, I believe we should focus our attention on Amrish Mahajan and the Mutual Bank of Harvey, not on Giannoulias and the Broadway Bank, if we are to assign names to the financial institution about which Sneed of the Chicago Sun-Timeshas heard “rumblings.” Although Mahajan is not known to readers ofNo Quarter and to the national media, I imagine they will desire more information on the unscrupulous banker once they read the information I unpack below the fold. And yes, Obama is involved, deeply involved.”

My interest in Amrish Mahajan and the Mutual Bank of Harvey was picqued by this list of contributors in Rezko’s bundling network provided by the Chicago Sun-Times last March. View the second page of the document, and notice the following entry:

Last name First name Obama donations Rezko connection
Mahajan Amrish $2,500 Banker whose bank loaned money to Rezko companies. The bank also loaned Rezko’s wife money to buy a vacant lot next to Obama’s home.

The data available in the Sun-Times spreadsheet is corroborated by the following data, which is democratically available at the Federal Election Commission‘s website:

MAHAJAN, AMRISH
CHICAGO, IL 60607
MUTUAL BANK

OBAMA, BARACK
VIA OBAMA FOR ILLINOIS INC
12/20/2003 500.00 24020030170
04/14/2004 1000.00 24020461757

Not only was Mahajan a member of Rezko’s bundling network; his bank, the Mutual Bank of Harvey, granted Rita Rezko the $500,000 mortgage she neededin order to purchase the lot on which the Obama mansion in Chicago sits. As many of you may recall, the Obamas could not have purchased the mansion they could not afford unless transactions for the mansion and the lot closed on the same day. Obama needed to locate someone who would buy the lot, and he approached Rezko, the convicted slumlord with whom Obama toured the property before they mutually agreed to the following arrangement:

The home and lot sales closed on June 15, 2005. A land trust controlled by the Obamas bought the house for $1.65 million, and the Obamas secured a $1.32 million mortgage from Northern Trust to complete that purchase. That same day, Rezko’s wife, Rita Rezko, bought the side lot for $625,000. A $37,000- a-year Cook County employee, she secured a $500,000 mortgage from Mutual Bank of Harvey.

The structure of this transaction begs the following question: What bank would lend a government employee who earns $37,000 per annum a $500,000 mortgage? What bank would assume such a risk?

The Mutual Bank of Harvey, of course, for the Mutual Bank of Harvey’s President is a man who is deeply connected to the Chicago machine that backed Barack Obama. Indeed, Amrish Mahajan was one of Mayor Daley’s first political appointments in 1989, when he was named to a seat on Chicago’s Plan Commission, where he would be joined by Obama’s former boss and Rezko’s business partner Allison Davis and by Valerie Jarrett, Daley’s Chief of Staff whochaired the Commission from 1991-1995. Mahajan, in other words, worked with those who devised and profited from Daley’s failed public housing experiment in Chicago, a public housing policy Obama helped fund as state Senator and US Senator.

Rezko, according to the Boston Globe, was one of the major beneficiaries of Obama’s legislative advocacy for funding of Daley’s public housing experiment. Other major beneficiaries are Jarrett and Allison Davis. Mahajan was also a beneficiary, for his bank had made $3.4 million dollars in loans to Tony Rezko’s slum landlord business since 2002. A banker for one of the slumlords who benefitted from the Daley housing program Obama helped bankroll, Mahajan was returning a favor when he wrote a $500,000 mortgage in 2005 for the wife of one of his clients. Although Tony’s financial problems were mounting in 2005, and although Rita earned only $35,000 per annum, Mahajan underwrote the mortgage. Favors must be reciprocated, I guess, especially when one can satisfy two parties at once: the person with whom one has a complicated relationship in real estate and the politician who helped finance that complicated relationship as state Senator and US Senator.

I doubt federal investigators are interested in the Mahajans solely for their involvement in the property deal involving Obama, Mahajan and the Rezkos. The Mahajans, I believe, are the foci of their probe for many reasons.

The real estate transaction involving Rita Rezko, the Obamas and Mutual Bank of Harvey is just the tip of the iceberg. Indeed, the Mutual Bank of Harvey seems to be at the center of all the corruption in Chicago. To quote former Donald Perillo, Chicago insurance mogul and son of the lawyer for Al Capone, in the Chicago Tribune article I cite above:

Donald Parrillo said he isn’t surprised to see Mahajan mix it up with politics and business. “He got that attitude from the Parrillo family,” the former alderman said. “He wanted to get in the game.”

And Mahajan certainly is in the game. The banker of the Chicago machine, he is also the man who wrote the mortgage for Rita Rezko that facilitated Obama’s purchase the mansion he could not afford. This is why I believe prosecutors are interested in Harvey Mutual Bank. Not only did Rezko receive loans from this institution; this bank is heavily involved in problematic real estate dealings involving Blagojevich and Obama. And if I may quote Rezko in the 9 JUN letter he wrote to Judge Amy St. Eve:

Your Honor, the prosecutors have been overzealous in pursuing a crime that never happened. They are pressuring me to tell them the “wrong” things that I supposedly know aboutGovernor Blagojevich and Senator Obama. I have never been party to any wrongdoing that involved the Governor or the Senator. I will never fabricate lies about anyone else for selfish purposes. I will take what comes my way, but I will never hurt innocent people. I am not Levine, Loren, Mahru , or Winter.”

Rezko is now talking, and prosecutors are presently interested in a politically connected financial institution. I bet Obama now regrets paying Rita Rezko $104,500 for the strip of the land in the lot on which his house sits in January 2006. Acquired with the assistance of a questionable $500,000 mortgage from Amrish Mahajan’s Mutual Bank of Harvey, this lot and Obama’s desire to expand his yard by bit was the catalyst for all the investigative reports into Obama’s deep ties to Rezko. By the way, Rita’s lot is only accessible through the front gate of Obama’s home; it is not a separate property, and it was never intended to be a separate property.

“It was a mistake to have been engaged with him at all in this or any other personal business dealing that would allow him, or anyone else, to believe that he had done me a favor,” Obama says of the real estate transactions with Rezko. I wonder if now he also believes it was a mistake for him to serve as the legislator who represented and bankrolled Richard Daley, Amrish Mahajan, Valerie Jarrett, Allison Davis and the Chicago Plan Commission. But at least he and Michelle have a house, a house the Mutual Bank of Harvey, the politically connected bank that wrote loans for Rezko, helped them procure in 2005. Too bad that house will be the end of Barack Obama.

obama-home.jpg

http://www.noquarterusa.net/blog/5382/about-the-financial-institution-mentioned-in-the-sun-times-obama-tony-rezko-amrish-mahajan-the-kenwood-mansion-rita-rezko/

From Citizen Wells November 1, 2011.

“Here is what we know about the purchase of a lot by Barack and Michelle Obama from Rita Rezko in 2006:

1. “In June, 2005, Mutual Bank President and CEO Amrish Mahajan and
other Mutual Bank officers approved a loan to Rita Malki Rezko (Rita
Rezko) which was guaranteed by Antonin Rezko so that Rita Rezko could
purchase a 9,090 square foot vacant parcel of real estate at 5050 S.
Greenwood Avenue, Chicago.” (Conner lawsuit)

2. “On or about January 4, 2006, Rita Rezko entered into an
agreement with Senator Barack and Michelle Obama (Obamas) to sell a
ten-foot strip of the 5050 S. Greenwood property to the Obamas.”
(Conner lawsuit)

3. “In late 2005 or early 2006, Conner performed an appraisal review
of the Adams Appraisal (Exhibit C) per the directive of Richard Barth
and James Murphy. Conner prepared a written Appraisal Review report
(ARR) opining that the Adams Appraisal overvalued the Greenwood lot by
a minimum of $ 125,000.00 and that a reasonable and fair valuation for
Mutual Banks’s underwriting purposes should be no greater than $
500,000.00 for the entire 5050 S. Greenwood parcel as originally
purchased by Rita Rezko.” (Conner lawsuit)

4. “On or about October 19, 2006, Mutual Bank received a Grand Jury
Subpoena (GJS) requiring Mutual Bank to produce the Rezko 5050
Greenwood loan file, as well as a Rita Rezko Riverside District
Development LLC checking account and loan file.” (Conner lawsuit)

5. “In October, 2007, Conner had various communications with Mutual
Bank’s Human Resources Department representative, Lana Schlabach. In
an email communication of October 15, 2007, Conner directly referenced
“Resentment over my mentioned discovery of the removal/replacement of
an appraisal review that I conducted. That appraisal review contained
substantial observations and suggestions. The transaction and parties
involved were high profile in the media.I am under the impression that
the FBI has since looked at the file.”” On October 23, 2007, eight days after Conner’s October 15, 2007 email to Schlabach attached as Exhibit J, Mutual Bank terminated Conner’s employment for pretextual reasons.” (Conner lawsuit)

6. “On October 23, 2007, eight days after Conner’s October 15, 2007
email to Schlabach attached as Exhibit J, Mutual Bank terminated
Conner’s employment for pretextual reasons.” (Conner lawsuit)

7. The FDIC has filed a lawsuit against Mutual Bank, Amrish Mahajan, Richard Barth, et al.”

https://citizenwells.wordpress.com/2011/11/01/fdic-mutual-bank-lawsuit-reveals-rezko-obama-corruption-kenneth-j-conner-lawsuit-amrish-mahajan-richard-barth-where-did-rezkos-get-the-money/

From ABC News Chicago August 22, 2011.

“Anita Mahajan, a Chicago businesswoman with ties to former governor Rod Blagojevich, pleaded guilty to bilking the state of Illinois by submitting bogus bills.

“I’m sorry,” Mahajan said in court Monday while pleading guilty to felony theft for pilfering about $100,000 in taxpayer money through her drug-testing company, K.K. Bio-Science. That company is now defunct.

The 60-year-old received four years of probation, agreed to pay $200,000 in fines and perform 1,500 hours of community service.

Mahajan’s husband, Amrish, was a banker and significant fundraiser for Blagojevich. Also, Blagojevich’s wife, Patti, made more than $100,000 in commissions handling real estate deals for the Mahajans in 2006, which caused a stir in the Blagojevich re-election campaign. The following year, Mahajan was charged with cheating the state of out of $2 million for drug tests that were never performed.

“People of this state were being cheated,” Dick Devine said in 2007 when he was the state’s attorney while announcing a seven-count indictment against Mahajan. The attorney general sued to recover the state’s lost money.

Four years later, Mahajan pleaded guilty to a single, reduced charge of theft instead of the felonies that would have sent her to prison for at least six years.

“Anita Mahajan is another example of the collateral damage that’s been left in the wake of the Rod Blagojevich Tsunami,” Steve Miller, Mahajan’s attorney, said.””

http://abclocal.go.com/wls/story?section=news/local&id=8320596&rss=rss-wls-article-8320596

From the FDIC lawsuit against Amrish Mahajan, et al.

“6. The Director Defendants also wasted corporate assets and drained the Bank’s capital by…(c) authorizing $ 495,000 in “bonuses” to pay for the criminal defense costs for the Defendant Amrish Mahajan’s wife who was indicted for Medicaid fraud”

“32. The Director and Officer Defendants failed to establish procedures that would have lessened the risks of the Bank’s improvidant lending practices. The terms of transactions were not accurately documented. Status reports were missing so that records of how an asset was progressing were not available. Terms of loans were changed at closing without board or loan committee approvals or any rcord in the file. Loan guarantees were frequently missing from the files. Appraisers were retained by brokers with an interest in seeing transactions consummated, not by the bank. Appraisals were often received after the loan was funded. Loans were typically non-recourse and dependent on guarantor abilities to repay in the event that the collateral was insufficient. Yet, little or no attention was paid to whether guarantors had sufficient liquidity to protect the Bank’s interest; the officers and the Board did little or no analysis of guarantor or borrower financial strength.”

http://www.courthousenews.com/2011/10/26/FDIC.pdf

From the Washington Times November 4, 2008.

“A former Illinois real estate specialist says FBI agents have questioned him about a Chicago property that had been bought by convicted felon Tony Rezko’s wife and later sold to the couple’s next-door neighbor, Sen. Barack Obama.

The real estate specialist, Kenneth J. Conner, said bank officials replaced an appraisal review he prepared on the property and FBI agents were investigating in late 2007 whether the Rezko-Obama deal was proper.

“Agents and I talked about payoff, bribe, kickback for a long time, though it took them only a short number of minutes of talking with me while looking at the appraisal to acknowledge what they already seemed to know: The Rezko lot was grossly overvalued,” Mr. Conner told The Washington Times Monday.

“Rezko paid the asking price on the same day Obama paid $300,000 less than the asking price to the same seller for his adjacent mansion,” he said. “This begs the question of payoff, bribe, kickback.””

http://www.washingtontimes.com/news/2008/nov/04/fbi-asked-questions-on-rezko-land-deal/

The Kenneth J. Conner lawsuit is still active.

https://w3.courtlink.lexisnexis.com/cookcounty/Finddock.asp?DocketKey=CAAI0L0ABBEHA0LD

Mutual Bank, Amrish Mahajan, Richard Barth, FDIC lawsuit, Kenneth J Conner whistleblower vindication, Obama Rezko land deal

Mutual Bank, Amrish Mahajan, Richard Barth, FDIC lawsuit, Kenneth J Conner whistleblower vindication, Obama Rezko land deal

“Why did Mutual Bank fire whistleblower Kenneth J Connor after he
challenged the appraisal on the land purchased by Rita Rezko, just
prior to the land sale to Obama?”…Citizen Wells

It looks like whistleblower Kenneth J. Conner is being vindicated. Conner was fired after revealing that the appraisal for the lot in the Obama Rezko lot deal was too high.

From the Chicago Tribune October 31, 2011.

“Officers and directors of Mutual Bank issued $10.5 million in
“imprudent” dividends, spent $250,000 of the bank’s money on a
wedding, and paid $495,000 in defense costs for a spouse’s Medicaid
fraud case before the Harvey-based lender failed in July 2009, a
federal regulator alleged last week.

Mutual was the bank that financed the purchase by the wife of
political fundraiser Tony Rezko of a side lot in a deal that enabled
Barack Obama to buy his dream house.
In a lawsuit filed in a U.S. District Court in the Northern District
of Illinois last week, the Federal Deposit Insurance Corp. also
accused the bank of spending $300,000 to hold a board meeting in Monte
Carlo, Monaco.

The FDIC is suing eight former directors, two officers and the bank’s lawyer.

The failure of the $1.7 billion-asset bank, which had 10 branches in
the Chicago area, is expected to cost the FDIC $775 million. From 2005
to 2009, the lender had nearly doubled in size, fueled by what would
turn out to be bad real estate loans, many of which were made to about
15 borrowers. Record-keeping was shoddy, and loan terms were changed
at closing with no board approval, the suit said. Mutual had become a
“lender of last resort for failed real estate projects,” particularly
in the hotel industry, the suit said.

One of the defendants, former bank president and board member Amrish
Mahajan, couldn’t be reached for comment.”

http://www.chicagotribune.com/business/ct-biz-1031-bank-suit-20111031,0,3469830.story

From the lawsuit:

“5. Collectively, the Director Defendants and Officer Defendants (“Director and Officer Defendants”) (a) recklessly implemented a strategy of rapid asset growth through approving a high concentration of risky CRE, ADC and out-of-area loans to a small concentration of high-volume borrowers; (b) failed to implement appropriate underwriting and credit administration practices; (c) ignored the Bank’s loan policies; (d) ignored federal lending regulations; and (e) disregarded warnings from the Bank’s regulators regarding the Bank’s lending activities.”

http://www.courthousenews.com/2011/10/26/FDIC.pdf

The name Mahajan may ring a bell.  Richard Barth may not. This should help.

From Citizen WElls August 22, 2011.

“A former state contractor with close ties to ex-Gov. Rod Blagojevich
plans to enter a guilty plea Monday, more than four years after she
was charged with bilking the state out of $2 million for drug tests
that were never performed, said a source with knowledge of the case.

Anita Mahajan, the wife of a major Blagojevich fundraiser, was charged
in May 2007 with theft and fraud, based on allegations that her
company, K.K. Bio-Science, submitted bogus bills for drug screenings
for clients of the Illinois Department of Children and Family
Services.

Elections Prosecutors also accused Mahajan of laundering money taken
from the alleged fraud and using it to buy properties in Chicago and
New York.”

“Mahajan is the wife of Amrish Mahajan, a former head of the defunct
Mutual Bank of Harvey who was called “Uncle Amrish” by Blagojevich’s
children. He held events for Blagojevich and raised at least $500,000
for the former governor’s campaigns. The Mahajans also hired Patricia
Blagojevich for several real estate deals that netted the former first
lady more than $113,000 in commissions.”

Kenneth J Conner whistleblower lawsuit

“9.  In June, 2005, Mutual Bank President and CEO Amrish Mahajan and
other Mutual Bank officers approved a loan to Rita Malki Rezko (Rita
Rezko) which was guaranteed by Antonin Rezko so that Rita Rezko could
purchase a 9,090 square foot vacant parcel of real estate at 5050 S.
Greenwood Avenue, Chicago. As part of the Mutual Bank loan
underwriting process, Mutual Bank obtained a real estate appraisal
from Adams Valuation Corporation (Adams Appraisal) which purported to
provide an opinion of value of the subject 5050 S. Greenwood real
estate (the collateral for the Rezko loan) at $ 68.76 per square foot.
A copy of the Adams Appraisal is attached as Exhibit C. In June, 2005,
Rita Rezko closed on the purchase of the 5050 S. Greenwood property at
a purchase price of $ 625,000.00 along with the loan from Mutual Bank
in the amount of $ 500,000.00 with Mutual bank obtaining a first
mortgage lien position on the Greenwood vacant parcel.”

“10.  On or about January 4, 2006, Rita Rezko entered into an
agreement with Senator Barack and Michelle Obama (Obamas) to sell a
ten-foot strip of the 5050 S. Greenwood property to the Obamas. A copy
of the Obama/Rita Rezko contract is attached as Exhibit D. As a result
of that transaction, the Rezkos requested that Mutual Bank release
it’s first collateral position to the ten-foot strip parcel
transferred to the Obamas. In that same general time frame, Richard
Barth, Mutual Bank Senior VP of construction lending and James Murphy,
Mutual Bank Senior VP Internal Auditor/Risk Manager, requested that
Conner perform an appraisal review of the Adams Appraisal attached
hereto as Exhibit C.”

“11.  In late 2005 or early 2006, Conner performed an appraisal review
of the Adams Appraisal (Exhibit C) per the directive of Richard Barth
and James Murphy. Conner prepared a written Appraisal Review report
(ARR) opining that the Adams Appraisal overvalued the Greenwood lot by
a minimum of $ 125,000.00 and that a reasonable and fair valuation for
Mutual Banks’s underwriting purposes should be no greater than $
500,000.00 for the entire 5050 S. Greenwood parcel as originally
purchased by Rita Rezko. In that same general time frame an appraisal
was performed for the 5050 S. Greenwood property by Howard B. Richter,
MAI which valued the 5050 S. Greenwood property at $ 54.00 per square
foot but then discounted the ten-foot strip being transferred by Rita
Rezko to the Obamas by fifty percent, as the ten-foot strip was
unbuildable standing alone…The valuation by the Richter Appraisal for
the 5050 S. Greenwood lot was substantially to Conner’s ARR
valuation.”

“12.  Conner notified Richard Barth and James Murphy orally of his ARR
findings and Conner’s ARR was filed in the “Rezko 5050 Greenwood” loan
file at Mutual Bank.”

“13.  In addition to Conner’s ARR stating that the Adams Appraisal
overvalued the 5050 S. Greenwood property, Conner had reported on
other occasions that Adams Valuation Corporation had overvalued real
estate subject to Mutual Bank loan underwriting valuation.”

“14.  On or about October 19, 2006, Mutual Bank received a Grand Jury
Subpoena (GJS) requiring Mutual Bank to produce the Rezko 5050
Greenwood loan file, as well as a Rita Rezko Riverside District
Development LLC checking account and loan file. Electronic mail
(email) communications about the subpoena were circulated to Mutual
Bank officers and attorneys, including Amrish Mahajan, James Murphy
and Conner. A copy of an October 19, 2006 email string pertaining to
the Rezko GJS is attached as Exhibit F. On information and belief,
Conner’s ARR was removed from the Rezko 5050 Greenwood loan file prior
to the submission of that file pursuant to the GJS, and in it’s place
Mutual bank submitted an appraisal checklist which was purportedly
dated “06/15/05″ from Senior VP James P. Murphy (Murphy Checklist). A
copy of the Murphy Checklist is attached as Exhibit G.”

“16.  In 2007, Conner observed that his ARR of the 5050 S. Greenwood
property was not in the Rezko 5050 Greenwood loan file and in it’s
place was the Murphy Checklist purportedly dated “06/15/2005.”…On June
18, 2007, Conner sent an email to James Murphy which provides, in
part, “I spent time trying to track down work of mine that should be
in a particular high profile loan file, though it is not–having been
replaced by a checklist.””

“17.  In October, 2007, Conner had various communications with Mutual
Bank’s Human Resources Department representative, Lana Schlabach. In
an email communication of October 15, 2007, Conner directly referenced
“Resentment over my mentioned discovery of the removal/replacement of
an appraisal review that I conducted. That appraisal review contained
substantial observations and suggestions. The transaction and parties
involved were high profile in the media.I am under the impression that
the FBI has since looked at the file.””

“18.  On October 23, 2007, eight days after Conner’s October 15, 2007
email to Schlabach attached as Exhibit J, Mutual Bank terminated
Conner’s employment for pretextual reasons.”

https://citizenwells.wordpress.com/2011/08/22/anita-mahajan-pleads-guilty-blagojevich-and-obama-ties-mutual-bank-president-amrish-mahajan-wife-rezko-obama-land-purchase/

From the Washington Times November 4, 2008.

“A former Illinois real estate specialist says FBI agents have questioned him about a Chicago property that had been bought by convicted felon Tony Rezko’s wife and later sold to the couple’s next-door neighbor, Sen. Barack Obama.

The real estate specialist, Kenneth J. Conner, said bank officials replaced an appraisal review he prepared on the property and FBI agents were investigating in late 2007 whether the Rezko-Obama deal was proper.

“Agents and I talked about payoff, bribe, kickback for a long time, though it took them only a short number of minutes of talking with me while looking at the appraisal to acknowledge what they already seemed to know: The Rezko lot was grossly overvalued,” Mr. Conner told The Washington Times Monday.

“Rezko paid the asking price on the same day Obama paid $300,000 less than the asking price to the same seller for his adjacent mansion,” he said. “This begs the question of payoff, bribe, kickback.””

http://www.washingtontimes.com/news/2008/nov/04/fbi-asked-questions-on-rezko-land-deal/

There is one more event which must take place to vindicate Kenneth J. Conner. That is the indictment and arrest of Barack Obama.