Monday, December 17, 2012

The Rezko's finances and that $625k to purchase that lot by the Obamas

Dr. Fortunee Massuda filed a suit earlier this month (pdf file) alleging Tony Rezko bilked her in excess of $4 million

In June of 2006, knowing that Tony Rezko, the managing member of Rezko Enterprises and PE Chicago, was under severe financial and legal distress, and desperate for funds, Panda Express (among other improper actions) bought out PE Chicago’s 50% interest inthe Rezko-Citadel partnership at a price many times less than the fair value of that interest. At the time of the purchase, Panda Express knew that Dr. Massuda and others had significant ownership interests in PE Chicago. In fact, about two months before the Defendants purchased PE Chicago’s 50% interest in the Rezko-Citadel partnership, Dr. Massuda directly contacted Defendants and inquired about selling her interest in Enterprises, the LLC that wholly owned and managed PE Chicago. Despite knowing of Dr. Massuda’s interest in Enterprises, Defendants conspired with Tony Rezko to acquire PE Chicago’s entire interest in the Rezko-Citadel partnership and at a price far less than the fair value of such interest, and to funnel the proceeds of the transaction to Rezko personally thereby depriving PE Chicago, and those with interests in PE Chicago, of the money to which they were rightfully due. As a result of the improper actions of the Defendants, Dr. Massuda has suffered damages in excess of $4 million.

Just a year earlier Rita Rezko had borrowed $500k to buy that lot next to the Obama's.
The home and lot sales closed on June 15, 2005. A land trust controlled by the Obamas bought the house for $1.65 million, and the Obamas secured a $1.32 million mortgage from Northern Trust to complete that purchase. That same day, Rezko's wife, Rita Rezko, bought the side lot for $625,000. A $37,000- a-year Cook County employee, she secured a $500,000 mortgage from Mutual Bank of Harvey.
Read the whole suit, but it sure seems Tony and Rita were living on borrowed money for a long time and curious Rita Rezko could get a half-million dollar loan in 2006 to purchase a lot.

No comments: