Posted on 07/01/2013 6:59:49 PM PDT by george76
Amrish Mahajan, former president of failed Mutual Bank of Harvey and a major fundraiser for imprisoned former Gov. Rod Blagojevich, has been barred from future participation in the banking industry under a newly released regulatory order.
Mr. Mahajan consented, without admitting or denying unsafe or unsound banking practices, to a May 1 order by the Federal Deposit Insurance Corp. prohibiting him from participating “in any manner” in the conduct of the affairs of any federally insured institution.
...
Mr. Mahajan was known for his political connections, particularly to Mr. Blagojevich. Mutual Bank briefly entered the realm of national politics after news surfaced of the bank's role in financing the purchase of a lot next to the home of then-U.S. Sen. Barack Obama. The Obama family bought part of the lot from the wife of Blagojevich fundraiser Tony Rezko after Mutual Bank lent her $500,000 to purchase the property. Mr. Rezko is in prison on charges of fraud, among other things.
Mr. Obama, during his initial run for president, acknowledged later that the deal was a mistake
(Excerpt) Read more at chicagobusiness.com ...
of-possible-interest ping
Amrish Mahajan, is a defendant in 2 lawsuits involving Mutual Bank, the bank that loaned Rita Rezko the money to buy the lot that was split and sold to the Obama’s. Kenneth J. Conner, the whistleblower in that transaction is plaintiff in one and the FDIC the other.
August 22, 2011 (CHICAGO) (WLS) — Anita Mahajan, a Chicago businesswoman with ties to former governor Rod Blagojevich, pleaded guilty to bilking the state of Illinois by submitting bogus bills.
“I’m sorry,” Mahajan said in court Monday while pleading guilty to felony theft for pilfering about $100,000 in taxpayer money through her drug-testing company, K.K. Bio-Science. That company is now defunct.
The 60-year-old received four years of probation, agreed to pay $200,000 in fines and perform 1,500 hours of community service.
Mahajan’s husband, Amrish, was a banker and significant fundraiser for Blagojevich. Also, Blagojevich’s wife, Patti, made more than $100,000 in commissions handling real estate deals for the Mahajans in 2006, which caused a stir in the Blagojevich re-election campaign. The following year, Mahajan was charged with cheating the state of out of $2 million for drug tests that were never performed.
Added to Chicago crime thread. Thanks. One down 99 to go
Politically connected ex-Mutual Bank president barred from banking (Obama mentioned )
Check out article, also comments # 3 and # 4.
Thanks, thouworm.
Oh, you mean that house and property that doesn’t have an Obama listed anywhere on the deed and the family left in January 2009 never to set foot in since?
March 3 , 2009
MADIGAN SUES CHICAGO DRUG TESTING COMPANY FOR DEFRAUDING STATE OF $1.3 MILLION
Attorney General Alleges K.K. Bio-Science and Anita Mahajan Billed DCFS for Drug Tests Never Performed
Chicago—Attorney General Lisa Madigan filed a civil lawsuit today against a Chicago drug testing company for billing the state more than $1.3 million for drug tests it never performed.
“This company blatantly defrauded the State of Illinois by submitting bills for work that it never performed,” Madigan said. “We will take every action necessary to recover the taxpayer money that this company wrongfully obtained.”
Madigan’s civil complaint alleges that K.K. Bio-Science, Inc., and its President, Anita Mahajan, knowingly billed the state from at least January 2004 until November 2006 for drug testing services never performed for the Illinois Department of Children and Family Services (DCFS) in child custody cases.
In 1997, the State of Illinois awarded K.K. Bio-Science a no-bid contract to conduct DCFS drug testing. By 2003, the number of DCFS clients required to submit to drug testing at K.K. Bio-Science had dropped significantly. The company, however, allegedly continued to bill the state at similar historical rates on a monthly basis for several years. According to Madigan’s complaint, from January 2004 until late 2006, the defendants billed the state at least $1.3 million for work never performed.
State investigators discovered the fraudulent billing in January 2007, at which time DCFS terminated its contract with K.K Bio-Science. The company was involuntarily dissolved in December of that year.
Madigan’s complaint charges the defendants with one count of violating the Illinois Whistleblower Reward and Protection Act, one count of common law fraud and one count of payment by mistake of fact. The Whistleblower Reward and Protection Act provides that a person who knowingly presents a false claim for payment is liable and could face civil penalties. The Office of Cook County State’s Attorney Anita Alvarez is currently prosecuting Anita Mahajan for criminal charges stemming from the alleged fraud.
Madigan’s lawsuit asks the court for at least $3.9 million in damages and civil penalties. The Illinois Whistleblower Reward and Protection Act provides for a civil penalty between $5,500 and $11,000 for each false claim, plus three times the amount of damages the state sustains, as well as the costs of prosecution.
Bureau Chief Carl Bergetz and Assistant Attorneys General Jennifer Smiley and Malini Rao are handling the case for Madigan’s Special Litigation Bureau.
Source : http://www.illinoisattorneygeneral.gov/pressroom/2009_03/20090303.html
“The Tribune reveals Mahajan’s husband, Amrish, is the driving force behind his wife’s company and helped raise more than a half-million dollars for Blagojevich’s campaigns since 2001.”
Wonder who else received donations?
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