Obama’s Looming Subprime Nightmare
By Larry Johnson on October 18, 2008 at 2:00 PM in Barack Obama, Chicago Mansion, Chicago politics, Corruption, Crime, Current Affairs, Home Loan, Housing & Housing Crisis, John Batchelor, Patrick Fitzgerald, Tony Rezko
Just like the real estate bubble, which exploded like the Death Star, the Worship Our Savior Barack train is going to derail. According to the Washington Times, a criminal complaint has been filed by a real estate appraiser who claims a fraudulent appraisal was used for the lot eventually sold to Barack Obama:
A former Illinois bank official, now claiming whistleblower status, says bank officials replaced a loan reappraisal that he prepared for a Chicago property that was purchased by the wife of now-convicted felon Tony Rezko, part of which was later sold to next-door neighbor Barack Obama.
In a complaint filed Thursday in the Circuit Court of Cook County, Kenneth J. Connor said that his reappraisal of Rita Rezko’s property was replaced with a higher one and that he was fired when he questioned the document.
Mr. Connor, a real estate and commercial credit analyst at the Mutual Bank Corp. in Chicago, also noted in the complaint that the bank received a grand jury subpoena in October 2006 requiring it to produce information concerning Mrs. Rezko’s purchase, including the bank’s files on the property.
The media, who for the most part have ignored the shady land deal between the felon Tony Rezko and Barack Obama, may now be shamed into at least examining the matter in light of their relentless scrutiny of Joe the Plumber. This was a fairly sophisticated money laundering transaction. For starters, Tony Rezko was one of Barack Obama’s major fund raisers. The property that Barack and Michelle Obama wanted to buy had an asking price of $1.95 million dollars. They got a sweetheart loan and bought the house for $1.65 million. Why? Because the owners of the home were able to sell the adjacent lot on the same day to Tony Rezko and his wife for $125,000 dollars more than the land was worth. The Rezkos paid full price, $625,000 for a strip of land adjacent to the house, that according to the appraiser is only worth $500,000.
The inimitable John Batchelor is on this like a chicken on a bug.
John writes:
Startling news this morning from a bizarre break in the mystery of what Tony Rezko is telling prosecutors in Chicago in exchange for a better deal on his conviction for graft and corruption. In the Washington Times — not from either of the Chicago papers — there is a report of a whistleblower lawsuit by previously unknown bank clerk Kenneth J. Connor against his former employer, the Mutual Bank Corporation in Chicago, for firing him because he refused to go along with an apparent real estate fraud involving the house that Barack Obama lives in. The details are complex, including the inflating of the value of the lot that Rita Rezko purchased and later sold a piece of to Barack Obama, including the fact that the bank owner, Amrish Mahajan, is a long-time Rezko crony and creditor, and I point to the gifted encyclopedic site The Real Barack Obama for a full explanation and savvy speculation of the reason Mr. Connor is upset. The heart of it is that Mr. Connor refused to go along with a fraud with regard the lot at 505o South Greenwood Avenue that Rita Rezko (as a cut-out for her husband Tony) bid on and purchased between January and June 2005 in order to make it possible for Barack and Michelle Obama to bid on and purchase their mansion at 5046 South Greenwood Avenue in Hyde Park. Mr. Conner now reveals all this in a lawsuit against the bank that fired him because he wouldn’t play along. Stepping around Mr. Conner’s ambition, there is the much more fetching clue here that the prosecutors have raced way past talking to Tony Rezko about the “Board Games” that led to his conviction, past Tony Rezko’s corrupt dealings raising cash for Governor Rod Blagojeich, past Tony Rezko’s years of skimming and cheating and bullying in Chicago, to go right after the critical piece of the Obama house deal that underlines that something is rotten in Hyde Park. Kenneth J. Conner doesn’t file a lawsuit in civil court unless he has spoken at great length with U.S. Attorney Patrick Fitzgerald’s office in front of a Grand Jury with regard the criminal investigation of Rezko and his clients. And the extremely irregular and unexplained purchase of the Hyde Park mansion for the newly elected and then sworn-in Senator Barack Obama in 2005 is a major mystery. On Sunday 12, when I spoke to Natasha Korecki, Chicago Sun-Times, re Rezko talking, I was convinced that the prosecution is pursuing the governor’s vulnerability first, and that the senator’s vulnerability was left till later if at all. Now I see, as can anyone who has studied the byzantine pleasure palace of Cook County, that Mr. Fitzgerald and his team have hold of secrets within secrets, and that Tony Rezko’s talking is like 3-in-1 oil, it lubricates the whole investigation of the governor and the senator. The lot! They are on to Rita Rezko’s lot! That is the backdoor to Barack Obama’s self-described “boneheaded” deal with Tony Rezko. That is the backdoor to what really happened between Tony Rezko and Senator-elect Obama and the Wondisfords sellers and the two silent-so-far realtors who were both friends of Tony Rezko.
Mr. Fitzgerald’s Clock is Ticking
It is follow the money. It is always follow the money. Who paid for the lot? Who paid for the house? When and how? Note that the Conner lawsuit also mentions that the grand jury was seeking, as far ago as October 2006, information on Rita Rezko’s checking account and loan file at the Mutual Bank. Her checking account. Fitzgerald is deeply involved in how 5050/5046 South Greenwood, the lot and the house (right), was passed over to Senator and Mrs. Obama. Mention also that another of my very best Chicago sources writes me that Mr. Fitzgerald best accelerate, his clock is ticking, and his tenure is iffy in an Obama Justice Department with a Democratic dominated Congress and an ineffective Chicago media
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(Release: November 13)
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This is the Smoking Gun, this deal shows that Rezko’s wife overpaid for that vacant lot, it was NEVER worth $625,000. This was a gift of at least $125,000 to Obama, the owner reduced the House price and increased the lot price. You know the FEDS will be squeezing those folks at the Bank and the Dr. that sold the property. All those people had already testified to the Grand Jury, this guy might show that they perjured themselves in front of the Grand Jury. If that’s the case these folks will have to come clean and tell the WHOLE TRUTH. This is TROUBLE for all involved, they all will be telling on everyone they know, just like Tony Rezko is doing.
Let’s not forget that Rezko’s credit was frozen, which is why Rita’s name was used to make the purchase. When the Obama’s bought the strip of the Rezko’s lot it was a nice chunk of change that went into his pocket that his creditors couldn’t get their hands on. So, as I’ve been saying for months, this is not simply about money laundering. It is also collusion to commit fraud. Finally the pieces are being put together to prove it.
Sing Tony sing!
yea tonys credit was frozen so another really interesting part of this according to rbo is tony signed as the guarantor of the loan .please let us have a fitz halloween,please.he can provide the treat and the rest of us will do the trick!
He also lied to a federal judge in a bail hearing about all of this. Fitz already had this and knew he was lying to the judge but could use for perjury later. Tony is so screwed.
Right you are. Fitzgerald is awesome. If Obama wins Fitzgerald is not going to hang onto this job.
That is an interesting detail. Reporting like that really coul dmake a difference.
Oh, this is beautiful. If the above is true, it sure does look like an attempt to hide a six-figure gift.
While I’m not sure we’ve never had a politician this corrupt running for a high office (anything’s possible), one really has to give credit to modern times for making it possible for SO, SO MANY dots to be connected.
What I don’t understand is how putting it in Rita’s name kept it away from Rezko’s creditors. I thought that if one was married, that creditors would have claim to the spouse’s income/assets as well. No? If not, why not?
Go Fitz Go! Get on this while you still can.
Basically, this is the same sort of ‘benefit’ to BO that getting house renovations etc. is alleged to be re Stevns.
Its chargeable criminally.
Poll finds Americans reject redistribution of wealth as suggested by Barack Hussein Obama
PRINCETON, NJ — When given a choice about how government should address the numerous economic difficulties facing today’s consumer, Americans overwhelmingly — by 84% to 13% — prefer that the government focus on improving overall economic conditions and the jobs situation in the United States as opposed to taking steps to distribute wealth more evenly among Americans.
http://www.nextgenerationcorp.com/NextGenBlog/?p=68
I’d say that choice is a no-brainer. This country has tried to redistribute wealth both up and down. neither way works and neither is ethical.
It’s time for the media to pick this story up.
Yeah, right. I won’t be holding my breath on that one.
But maybe Fox News can give the story some traction.
If they do then the Drudge will pick it up.
Xcellent Larry…The tangled webs Barky weaves…
I read they are trying to keep Pringle’s Obama series off the net…censorship is alive and well in America.
What is that? I know it is not about potato chips.
Eveyln Pringle’s an obamainvestigator.
Great work Larry!
Let’s always keep the Plumber in the works…
This needs to be investigated just like Joe…
I think JOE THE PLUMBER
all by his lonesome
tossed the biggest monkey wrench of them all
into the PIPES of this election
I can hear the metal upon metal grinding (braces maybe? they ARE young after all) in the LEAF eaters camp!
WHAT DO WE DO NOWWWWWWW
THE PLUMBER CONSPIRACY
ROFLMAO
When you throw a wrench in the gears, the machine stops. Oblockhead didn’t even see this one coming. So much for Oblockhead’s vaunted “judgment”.
This is great news, indeed. May it take the scumbag down and away from the American electorate forever!
Do you think Barack & Michelle are willing to distribute their wealth, when they cannot even help their own family, like Obama’s “whitey grandma”, who is still staying in an apartment in Hawaii, his half-brother, barely surviving in his $2 a month in Kenya?
Did Rezko teach the distribution of wealth idea to Obama? Gosh, rob the bank !
Vote:
McCain/Palin ‘08
God Save America !!!
I am still waiting for my check from the King and Prince of Redistribution, Obama and Biden.
C’mon, Barack and Joe, be patriotic, send me and my friends some checks.
We’re hurtin’ out here.
What? You don’t want to share your wealth?
Tell me it ain’t so!
Oh, I see, you want to KEEP yours, but redistribute ours AND be the King and Prince over it all and sit at your crooked table with all your (ig)nobles Rezko, Ayers, Oprah, Reid, Pelosi, Howard, etc.
It will be a pretty crooked table.
And watch out for that Kool-aid you’re serving — it’s poison!
I have a little message for you all (both Dem and Republican politicians) from William Wallace, better known as Braveheart:
“You think the people of this country exist to provide you with position. I think your position exists to provide those people with freedom. And, I go to make sure that they have it.”
Great news!
Now I am hoping that Obama becomes a one-term Illinois senator who also gets to spend time in one of the Federal prisons.
Former Gov. Dan Walker who did time at the one near the Canadian border can verify that it is no country club.
The house of cards I call “Rezko Manor” begins to fall around The Precious’s sorry ass?
I’ve got plenty of popcorn!
Galt, Master Thrall of Planet Triskelion
Proprietor, the NQ Popcorn Concession
Since circa 2008
That other house of cards, Oblockhead’s run for POTUS, isn’t helped by the shoddy platform upon which it sits.
Do you serve snocones? I would like to feel the sensation of a cold day in hell
Sounds like Fitz better hurry up…. isn’t his term up when the new prez is installed?
McCain could do an Ad titled…
Wealth Redistribution: The Chicago Way
Rezko scams the little people
Use said blood money to buy off politicians
Or even a part of their house if necessary, heh
Politician push or repress legislation to benefit
their very good friend Rezko
Who then scams the little people some more
so that….
In Chicago world, Obama’s wealth redristribution plan
doesn’t work as advertised.
Check the small print people.
that would be a good one. whether there is an investigation or not.
Many politicians and lobbyists, and other shady dealers on the political fringes, have been sent to jail for this kind of deal. It BETTER get some media play! I think if the media continues to hide this kind of corruption, it’s time to take it to the streets!
I couldn’t care less, personally, about his relationship to Rezko, other than the properties in his district which were trashed while money was given to that snake.
That’s the type of story that makes ME mad.
A tricky house deal? By the time he explains it, it’ll sound like he was doing someone a favor.
Impossible, in other words, to nail down into anything the public can get.
there are poeple doing time in federal court for less than the Rezko deal. that is a quid pro quo if there ever was one. what did rezko get for it, either before or after. was this a payoff or bribe by rezko for all the moneys that state senator obama had sent rezko’s way. it sure looks that way.
former congressman bob ney of Ohio, is now a convicted felon because he received a fancy golf vacation worth only a couple of thousand dollars from one of the abramoff clients and ney read some speech on the floor of congress in praise of the abramoff client.
the question is, will fitzgerald get this done in time for the november election or will this follow obama to the white house like the state kickback investigation of spiro agnew?
there are poeple doing time in federal prison (not court) for less than the Rezko deal. that is a quid pro quo if there ever was one. what did rezko get for it, either before or after. was this a payoff or bribe by rezko for all the moneys that state senator obama had sent rezko’s way. it sure looks that way.
former congressman bob ney of Ohio, is now a convicted felon because he received a fancy golf vacation worth only a couple of thousand dollars from one of the abramoff clients and ney read some speech on the floor of congress in praise of the abramoff client.
the question is, will fitzgerald get this done in time for the november election or will this follow obama to the white house like the state kickback investigation of spiro agnew?
Hey I read right past the typo and never noticed it. But thanks for clarifying. Any case, I would enjoy seeing Obama spend time BOTH places.
It is a money laundering scheme.
Question; If the appraisal was jacked $125,000, who recieved the kickback?
A few possibilities on that.
The money was carried back to “balance” off how the loan from Northern Trust to Obama was structured. The grandjury would only be required to look at the boards of these banks, Harveys, Broadway, Mutual and Northern Trust, to see that there was a co-ordinated effort to get Michelle her “dream” home. And a bump in income for MO to make it so they would qualify in the first place.
What was the buy out value of the option the former employee of Rezko’s worth?
Aside from the typical skimming that occurs with this type of transaction, was there a connection between the 800k for ACORN and the 125k?
Was 125k flipped to folks on the Historic Land Commission? Some where in the bowels of Chicago there is a transfer recorded of said funds.
Mr. Johnson, I wonder if this being a civil suit and you being correct, that The US Attorney’s Office has declined to persue this aspect of the investigation inspite of there being enough for the grandjury to return indictments against the Obama’s.
If Obama could not afford this McDee palace going in and the deal was cooked from the start, what does that look like?
How I would love to see the depositions of then Senator-elect Obama, his wife and Rezko’s wife, the Wondisfords, and both realtors.
One day when if the all the details of this story come to light it will be plan for everyone to see that Michelle Obama jammed the sellers so bad, they had no choice to agree to the terms.
AnninCA is probably right. The Cool Breeze Senator will explain it away like he does everything else and the MSM will lap it right up. If they ever do decide to cover and investigate the story it will be on Nov. 4.