“Whistleblower” Civil Suit Filed Against Bank in Rezko Land Deal

By Julia Hoppock

Oct 18, 2008 2:29pm

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

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