Posted on 07/09/2010 8:51:02 AM PDT by jazusamo
Queens congressman Gregory Meeks appears to have turned to a major Democratic fund-raiser to help him settle a secret $40,000 loan after the FBI began probing the deal.
Last month, Meeks borrowed $59,650 from a Westchester-based investment firm owned by Dennis Mehiel, a businessman and one-time candidate for New York lieutenant governor.
Days later, he paid $59,000 to Ed Ahmad, a Queens businessman from whom he borrowed $40,000 in 2007. The additional cash was meant to cover interest Meeks said he owed on the first loan.
Meeks originally borrowed the money from Ahmad in January 2007 to help cover the cost of his then-new and opulent family home, sources familiar with the matter told the Daily News.
The loan had no interest rate or due date - and for years Meeks made no payments on it, the sources said.
Meeks did not reveal the loan on his 2007 and 2008 House financial disclosure forms and told The News this week he could not find any documents associated with it.
In late May, the FBI questioned Ahmad about the check he wrote to Meeks, a source said. Ahmad then asked Meeks to repay the loan.
The News revealed the existence of the loan in June, and a day later, Meeks sent Ahmad a check for $59,000, adding annual interest payments of about 12.5%, the sources said.
That same week, Meeks for the first time listed the loan from Ahmad on his 2009 financial disclosure forms.
Meeks appears to have obtained money to pay back Ahmad from Mehiel, a longtime Democratic supporter who ran unsuccessfully for lieutenant governor in 2002 as Carl McCall's running mate.
On June 18, Meeks signed a 10-year loan for $59,650 from Mehiel's firm, Four Investments, at 7.3% annual interest.
A review of property records found no evidence that Four Investments has made any similar loans in New York.
Mehiel and his wife have donated nearly $493,000 to Democratic Party candidates and committees since 2004.
The top beneficiaries include Hillary Clinton ($55,800) and New York Sen. Kirsten Gillibrand ($18,100).
Mehiel and his wife, Karen, donated $9,600 to Meeks on July 30, 2009, records show.
He did not return calls for comment but told The New York Times in February, "I'm a longtime personal friend or acquaintance of virtually every Democratic member of Congress from New York."
Meeks did not return calls seeking comment.
The FBI and prosecutors in Manhattan U.S. Attorney Preet Bharara's office have subpoenaed documents regarding several Queens politicians, including Meeks and his longtime ally, state Senate President Malcolm Smith (D-Queens).
Ethics experts say Meeks could be charged with filing a false statement to the government if it is shown he deliberately withheld information about the loan from his financial disclosure forms.
Crook
Yea but Hes a donk. so it’s ok
“opulent family home”...on $174K a year. No wonder these bastards will do and say anything to remain in office.
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