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"Whistleblower" Civil Suit Filed Against Bank in Rezko Land Deal

October 18, 2008 2:29 PM

A civil suit was filed against Mutual Bank Corporation this week regarding the Rezko-Obama land deal that has called the Democratic candidate so many headaches.

Kenneth J. Conner filed a $4.2 million suit against his former employer this week in Cook County Civil Court (see the suit HERE)  alleging the bank was engaged in systematic fraud. Conner used to perform real estate review and analysis for the bank and he says that in June 2005 Amrish Mahajam, the president and CEO of Mutual, approved a loan to Rita Malki Rezko so she could purchase a 9,090 square foot vacant parcel of real estate adjacent to land being purchased by Sen. Barack Obama, D-ill.
As part of the loan underwriting process, Adams Valuation Corporation estimated the property was worth $68.76 per square foot, and Mrs. Rezko closed on the property at a price of $625,000 with a loan for $500,000 from Mutual.

When Mrs. Rezko entered into an agreement with Barack and Michelle Obama to sell a ten-foot strip from the property, ultimately for $104,500, the Rezkos requested that Mutual Bank release its first collateral position to the ten-foot strip parcel transferred to the Obamas. Conner was asked to perform an appraisal review of the original appraisal, and he found that the Adams appraisal overvalued the lot by a minimum of $125,000. Conner claims that he was later fired from the bank after alerting authorities that his appraisal had been removed from the bank's files.

What does Obama have to do with this? Nothing directly, as far as I can tell from reading the lawsuit. But it does bring back into the news the Rezko mess, which the Obama campaign would rather just vanish.

The New York Daily News and the Washington Times have more.

-- jpt
   

October 18, 2008 | Permalink | Share | User Comments (113)

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What a bunch of fools would elect a smooth talking politician that will continue to talk and talk - and do nothing - or worse act like a communist/socialist/radical. We may as well elect a used car salesman - do you really think Obama has your best interests in mind and not his own, and not the leftist wing in the D party? Come on folks!

Posted by: SeattleBruce | Oct 25, 2008 12:18:51 PM

Well, it just may have something to do with Obama.... Possibilities:

1) Had the land been valued at $500K and IF the owners really wanted $2,275K for both parcels, then BHO might have had to kick in another $125K to make both deals go through.

2) The real kicker is that Obama wanted to use the 1/6th value line to give Rezko money back... He paid him about $104,500 for the land (about 1/6 of the total "value"). SO if the land was only worth $500K, Obama would have only been able to kick-back $83,300 to Rezko using his ridiculous "1/6th value rule". Therefore, in effect Obama might have given Rezko $21,000 over his "1/6th value rule" (which is still way over-priced from the real value of the 10-foot wide piece of ground that I believe Obama had apraised at around $40,000.)

Just a few thoughts as how it may involve Obama....

Posted by: PA_Voter | Oct 21, 2008 12:04:19 AM

This is a definite Republican setup. Where was he through Rezko trial??? It is now three years since incident happened???

Suit - I don't even see that he notified Mutual Bank a claim was filed - any claim always cc's copy to name and address -bank??? Not there!!

Any claim filed always cc copy to party sued. Refer to last page. Bottom of page

Read through claim legal reference to law supporting a purported stance is non-existant.

Listing of Illinois Criminal Statutes - amateur & non-professional - appears not written by attorney - no attorney would list as such when referring to pertinent laws, regulations, violations, & lastly saying similar laws and state banking regulations- Refer to page 9 #20

Where are the Exhibits they mention???
There is no evidence supporting???
Releasing this to damage Obama would have included - attachments are part of suit????

Won't even bother to read anymore!!!

I rest my case. This claim appears to be fraud or a real stupid, stupid inept attorney!!!

Posted by: Sharonklim | Oct 20, 2008 12:31:31 AM

Obama = wealth redistribution

I've worked hard to earn what I've gotten. I am over the earned income credit, so the taxes I pay into the government is kept by the government.

Now Obama wants to give those who already pay no income taxes more of a credit. HOW CAN HE SUSTAIN THIS WITH THE HUGE DEFICIT THE COUNTRY HAS?

On top of that, he says he will increase spending by $100 trillion. There's no way he can lower my taxes - there's just no way to do it, give lower income earners even more of a credit and continue the level of government spending, let alone increase, as he has said - there is no doubt that if this is Obama's plan, it means a tax INCREASE at some point, no matter what he says now.

Think about it rationally, not in the context of what party you support or that this could be a "historic" presidency.

Also, remember one thing - if Obama wins, he will be supported by a Democratic majority, including Pelosi and Reid. Basically, he will have close to unlimited power. DO WE REALLY KNOW ENOUGH ABOUT THIS MAN - EVEN TAKING AWAY THINGS LIKE WRIGHT, REZKO, AYERS, ACORN, MICHELLE OBAMA'S STATEMENTS AND EVEN OBAMA'S OWN STATEMENTS ("Redistribute the wealth," "angry white folks clinging to their bibles and guns") - THINK ABOUT THIS RATIONALLY BEFORE IT'S TOO LATE.

PLEASE!!!

Posted by: why? | Oct 19, 2008 7:20:45 PM

"Cooking the books!" The higher appraisal on the land made up for what Obama paid for the house, which was $300,000 less than market value. Barrack needed the house to be priced so he could qualify for the loan.

To make up the difference, Rezko dealt for a high appraisal on the land to make up the difference to the seller. So, the seller receives his asking price for the two properties, and Obama gets a deal courtesy of Rezko and Mutual Bank Corp.

Obama got Reko funding for a housing project, but there is no connection here, or political favors.


Posted by: independentview | Oct 19, 2008 5:55:12 PM

"Cooking the books!" The higher appraisal on the land made up for what Obama paid for the house, which was $300,000 less than market value. Barrack needed the house to be priced so he could qualify for the loan.

To make up the difference, Rezko dealt for a high appraisal on the land to make up the difference to the seller. So, the seller receives his asking price for the two properties, and Obama gets a deal courtesy of Rezko and Mutual Bank Corp.

Obama got Reko funding for a housing project, but there is no connection here, or political favors.

Posted by: independentview | Oct 19, 2008 5:52:55 PM

This is ridiculous!! Appraisal and actual selling price are irrelevant. This is old news that has been extensively investigated in the past.

I have had enough Republican tactics to fall for this new tactic.

I have enough real estate knowledge and can clearly see a scam.

Posted by: Sharonklim | Oct 19, 2008 2:57:45 PM

Obama is using sophisticated hidden hypnosis techniques when he speaks. That's why all the OBAMABOTS exist. They don't think rationally for themselves & are therefore "blank slates" & easy targets for this type of manipulation on a massive scale. WAKE UP PEOPLE! HELLO!

Posted by: Susan | Oct 19, 2008 10:28:04 AM

Well, let's see....Obama gave Rezko a $14 million dollar contract for a senior center amongst other contracts...coincidence? It's called kickback for those of you in denial about Obama's angel status. You will be electing a corrupt Chicago politican who is basically unqualified to be president. Go ahead ....if elected, you will find out there will be no "change."

Posted by: katherine | Oct 19, 2008 10:08:01 AM

marylou,

You are wrong. The appraisal was inflated. What, really, does this have to do with anything? Are you suggesting that the price one pays for their home is criteria for becoming president?

Obama/Biden 08!

Posted by: Common Sense | Oct 19, 2008 8:35:55 AM

It proves that we now know that Obama underpayed for his house while the Rezkos overpayed for the 10-foot strip beside it.

It sure smells like a kickback, doesn't it?

Posted by: marylou | Oct 19, 2008 8:26:13 AM

Of course Jake you would say Obama has nothing to do with it. PLEASE.

Dear Goodness for all that is in heaven, you people need to WAKE UP!!!!! Sleeze follows Obama wherever he goes, and the MSM, (JAKE) making excuses for him on a continual basis is going to cost this country.

Rezko, Wright, Pflegar, Farrakhan, ACORN, AYERS, Davis, Ondinga, Khalid, it just goes on and on and on.

I believe you all are being hypnotized. I truly do.

STOP drinking the koolaid!

Posted by: Brenda | Oct 19, 2008 3:39:26 AM

The Tampa Tribune endorsed McCain, not Obama.

Posted by: Lee | Oct 19, 2008 12:10:06 AM

My parent purchased a 10 foot strip from their neighbors to put in access to a new garage. Before the ink was dry, their village reappraised the land and the valuation of the strip was higher, but because there had been an agreement between the two parties, they settled at the lower price.

I don't really get what the fuss is about with this, or why you're even reporting it.

Posted by: and this means what? | Oct 18, 2008 11:32:55 PM

I guess you Republicans missed the last part of the article where Jake says what does Obama have to do with it.

No charges have ever been filed in respect to Obama and Rezko. This is a non story concerning Obama and nobody cares about Rezko.

Posted by: Jwench | Oct 18, 2008 10:19:04 PM

"It shows that Obama is a crook, if McCain had done such a thing the media would have been after him with more enthusiasm."

Exactly - this has everything to do with lack of character and integrity - both of which Obama clearly lacks. Why else would he have been able to purchase a house for $300,000 less than asking price? And with a sweetheart mortgage deal. Who cares you say? What? Now we let people in office with Ds behind their name just take money? It's crazy that the Obominions here do not see why this is a story.

Posted by: Sleepless in Seattle | Oct 18, 2008 9:17:05 PM

"nothing patriotic about reporting stuff that may only stir up the kooks even more."

I'm sure you weren't in line saying that when the press was savaging Palin and her family. That's disgraceful. How about the fairness doctrine, hmmm?

Posted by: Sleepless in Seattle | Oct 18, 2008 9:09:10 PM

"I am confident that he will be found that he has nothing to do with it."

The press has not properly vetted Obama. They vetted Palin in 6 weeks and yet not Obama on the top of the ticket in 2 years. Our national press is pathetic and a national disgrace. If the big 'o' gets in - expect him to further consolidate his Pravda lackies by attempting to shut down so called 'conservative' talk radio. Can conservative blogs be far behind? This is how the communists do things...Obama, the closet communist. Or perhaps like his buddy Ayers, communist with a small 'c'. Wake up America - do NOT play Russian roulette with this guy that we know so little about and that the press refuses to treat with the scrutinty that the office of the POTUS deserves.

Posted by: Sleepless in Seattle | Oct 18, 2008 9:06:51 PM

Yes, I am sure they would rather have it "vanish..."

The bigger story is how Obama pulled in favors for Rezko's projects that made him rich and led to disaster for the poor. Virtually ignored. If McCain had been involved with such a character it would be everywhere and McCain would be running about 20% in the polls.

Can't wait for the say a lot, do nothing useful Obama presidency!


Posted by: Wade | Oct 18, 2008 9:00:17 PM

RE: "New York Daily News and the Washington Times"

-I wonder why the Washington Post and New York Times weren't all over that story. Hmmm.....

Posted by: Dude | Oct 18, 2008 8:26:59 PM

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