Tag Archives: Where did Rezkos get the money?

FDIC Mutual Bank lawsuit reveals Rezko Obama corruption, Kenneth J. Conner lawsuit, Amrish Mahajan, Richard Barth, Where did Rezkos get the money?

FDIC Mutual Bank lawsuit reveals Rezko Obama corruption, Kenneth J. Conner lawsuit, Amrish Mahajan, Richard Barth, Where did Rezkos get the money?

“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

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.
From Citizen Wells October 31, 2011.

“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.”
“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.”
https://citizenwells.wordpress.com/2011/10/31/mutual-bank-amrish-mahajan-richard-barth-fdic-lawsuit-kenneth-j-conner-whistleblower-vindication-obama-rezko-land-deal/
8. The Rezko’s were deeply in debt. Where did they get the money to purchase the lot?

From the Real Barack Obama April 1, 2008 by Brenda J. Elliott.

“Weeks earlier, on February 10, 2008, RezkoWatch posted a lengthy
article in which was discussed the fact that Rita Rezko purchased the
lot for the full asking price of $625,000.00, with a downpayment of
$125,000.00 and the $500,000.00 balance financed with the Mutual Bank
of Harvey, Illinois, which is owned by Amrish Mahajan, who had loaned
millions of dollars in financing for Tony Rezko’s real estate
ventures.

It is also important to note that Sreenan, who handled the transaction
for Rita Rezko, “said that the lot was attractive to developers and
that the Rezkos had to outbid others to buy it.”

Complicating the matter is the fact that the January 26, 2008, Motion
for Issuance of an Arrest Warrant in United States of America v.
Antoin Rezko showed that in November 2006 Tony Rezko had submitted
documentation “detailing his assets and liabilities” to the Court. On
November 2, 2006, Rezko’s counsel sent a letter to the Court which
stated “that it was ‘abundantly clear’ that [Rezko] ‘has no income,
negative cash flow, no liquid assets, no unemcumbered assets, is
significantly in arrears on many of his obligations … and has been
forced to rely on family friends for financial assistance.’” Rita
Rezko only “had a salary of $37,000, but no other significant assets.”

In fact, on October 20, 2006, when Tony Rezko made his second court
appearance following his indictment, it was reported that Rezko had
“fallen tens of thousands of dollars behind in mortgage and property
tax payments. The lender filed suit to take back the big place.” Not
only were the Rezkos broke, but Tony Rezko was about $50 million in
debt.

As RezkoWatch wrote on February 10, 2008, this leads to the question
of where Rita Rezko obtained the $125,000.00 downpayment to purchase
the lot, as the source is not stated. Additionally, as this debt—the
$125,000.00—is not listed among Rita Rezko’s liabilities in October
2006, it suggests that the loan had been paid off.”

http://therealbarackobama.wordpress.com/2008/04/01/follow-the-money-who-really-bought-the-rezko-lot-updated/