Authorities: Bank President Improperly Paid Himself Nearly $500K
CHICAGO (CBS) -- A $200,000 expenditure for a wedding, and $250,000 for a board meeting in Monte Carlo, are among the alleged acts of improper spending by the failed Mutual Bank of Harvey.
As WBBM Newsradio's Mike Krauser reports, the bank had political connections reaching all the way to the White House.
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The Federal Deposit Insurance Corporation alleges that bank president Amrish Mahajan paid himself $495,000 in advances and bonuses, and the money was spent it part on attorneys for his wife, Anita.
Anita Mahajan and her company, K.K. Bio-Science Inc., had been accused of billing the state for drug testing services that were never performed. Eventually, she pleaded guilty to a lesser charge, and was ordered in a civil case to pay more than $393,000 in restitution.
K.K. Bio-Science is now out of business.
Amrish Mahajan was a campaign contributor to deposed Gov. Rod Blagojevich, and he and his wife were involved in real estate transactions with the ex-governor's wife, Patti, in which she received over $100,000 in commissions, the Chicago Sun-Times reported.
Mutual Bank of Harvey also financed a loan for property adjacent to President Barack Obama and his family's home in the Kenwood neighborhood, which was purchased by the wife of convicted political fundraiser Antoin "Tony" Rezko.
The bank failed in 2009. The lawsuit against the bank by the FDIC targets Amrish Mahajan and other bank officers and board members.
The Sun-Times Media Wire contributed to this report.
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