There is Justice

Crain’s reports that the Feds have indicted 10 people in a mortgage fraud scheme involving purchases of condos at 33 W. Ontario, or Millennium Centre, the River North high rise developed by American Invsco.

Acting together, the investors provided false information about their employment, income and assets to secure the loans to finance seven condos and two townhomes at Millennium Centre, a 59-story tower at 33 W. Ontario St., according to the U.S. Attorney’s Office. The indictment is one of five mortgage-fraud cases involving more than $48 million in loans that the U.S. attorney’s office announced Tuesday.

According to the indictment, Mhde Askar, 23, of Chicago, and Mahmoud Saleh, 35, of Hinsdale, formed a company to buy units in the 363-unit tower and profited by collecting mortgage rebates from the developer and flipping the units for a profit to handpicked buyers.

To obtain the fraudulent loans, the pair enlisted the help of Ahmad Karkukly, 33, of Palatine, a loan officer at Countrywide Home Loans Inc., the indictment says.

Mr. Askar was originally arrested in 2008 and is free on bail, court records show. One of his lawyers, Loop attorney Michael F. Clancy, could not be reached for comment. An attorney representing Messrs. Saleh and Karkukly was unavailable.

Fed: Fraud used to get loans for Streeterville condos [Crain’s, Alby Gallun and Thomas A. Corfman, June 23, 2