Three partners in a failed North Shore development project, a loan officer, and a title company executive were charged in a federal indictment unsealed on June 5, 2011. The charges allege that the five engaged in a $15.7 million residential mortgage and construction loan fraud scheme to help finance a failed mixed-use commercial development known as the Center of the Northshore.
The five defendants allegedly caused various lenders and a title company to lose at least $8.45 million. The proceeds from the loan allegedly were used to make interest payments on multiple fraudulent residential mortgages, and to make interest payments on a $26.2 million loan to finance the purchase of 14 acres in Northbrook. The project intended for the project at the intersection of Dundee Road and Skokie Boulevard ultimately fell into foreclosure.
A federal grand jury returned an 11-count indictment on May 26, 2011. Charges against the defendants include wire fraud, bank fraud and making false statements to influence the action of a bank. The indictment was unsealed only after federal agents arrested four of the five defendants, and is seeking forfeiture totaling almost $10.5 million from all five defendants.
If you are seeking to learn about your legal options for a short sale or foreclosure, contact a Chicago foreclosure attorney for more information.