Obama Giannoulias Rezko Auchi Mahajan, Obama still attending Giannoulias fundraiser?, Giannoulias bank loan, Citizen Wells open thread, August 3, 2010
Obama Giannoulias Rezko Auchi Mahajan, Obama still attending Giannoulias fundraiser?
For those of you who listened to my interview on the Chalice radio show this past Sunday night, most of the names mentioned below will sound familiar.
From the Chicago SunTimes August 2, 2010.
“A new headache for Giannoulias? Another Rezko loan”
“By February 2006, businessman and political fixer Tony Rezko was already politically radioactive, caught up in a federal investigation that would see him criminally charged by the end of that year.
News reports had linked Rezko, a key adviser and campaign fund-raiser for then-Gov. Rod Blagojevich, to shady deals involving state pension funds — among the crimes that ultimately would send him to prison.
This was the Tony Rezko who, looking for millions of dollars for a massive South Loop development, turned to Broadway Bank, owned by the family of Alexi Giannoulias. Giannoulias, the Democrat now running for U.S. Senate, had left his post as a senior loan officer at the Chicago bank in late 2005 to mount a successful campaign for Illinois state treasurer, though he still held an ownership stake in the bank.
Rezko’s company asked. And Broadway Bank came through.
On Feb. 14, 2006, newly obtained records show, the bank made a $22.75 million loan to a company called Riverside District Development LLC, whose owners, it turns out, included Rezko.”
“Giannoulias, who touted his experience at Broadway Bank in his campaign to win election as state treasurer, has said its failure was the result of the national economic slowdown and the pullback in the real estate market, in which it invested heavily.”
“Broadway Bank made the loan even though another Rezko company, Chicago Hudson LLC, had fallen behind on a $10.9 million loan it got from the bank four years earlier. That loan — for a proposed high-rise condo building at 750 N. Hudson on the Near North Side that never got built — ended up in Bankruptcy Court. The property ended up being sold to another developer. Broadway Bank received $11.5 million from the sale, which took place July 31, 2006.
Following Rezko’s indictment in October 2006, he and his lawyers met in January 2007 with U.S. District Judge Amy St. Eve to discuss his assets. During that closed-door hearing, Rezko disclosed his ownership stake in Riverside District Development, the company that got the $22.75 million loan from Broadway Bank. Rezko’s lawyers said his main partner in Riverside was General Mediterranean Holding, a Luxembourg company controlled by Iraq-born billionaire Nadhmi Auchi.”
“According to Giannoulias and Auchi, Riverside District Development paid off the Broadway Bank loan with money it obtained from a $27 million loan from another financial institution: Mutual Bank.
Like Broadway Bank, Mutual also ended up getting shut down by federal regulators — though the loan was paid off, records show. Like Rezko, Mutual’s president, Amrish Mahajan, had been a top fund-raiser for Blagojevich.”
For those of you really paying attention, the following exerpt will ring a bell.
“Conner was employed by Mutual bank from on or about August 3, 2000 until involuntarily terminated on October 23, 2007. Conner reported to James Murphy, Senior Vice President, Internal Auditor/Risk Manager, who in turn reported to Amrish Mahajan, President & CEO of Mutual Bank.”
Thanks to commenter Hero.
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