Block 37 Developer Indicted On Fraud Charges

(CBS) – The original developer who had so much trouble putting up and then leasing Block 37 in downtown Chicago has some more trouble — this time with the feds.

A grand jury has indicted Lawrence Freed and his company’s vice president, Caroline Walters, for allegedly whitewashing the books to get loans and city funds, according to federal prosecutor Renato Mariotti.

“They were telling lies in order to get TIF payments from the city of Chicago they weren’t entitled to,” he said.

The situation occurred during efforts to building Block37, which is not, however, specifically mentioned in the indictment.

Freed issued a statement saying his attorneys are reviewing the charges, which he takes very seriously.

CBS 2 television studios are based at Block 37. Bank of America later took over the site.

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