• Developer of New City YMCA Property Facing Lawsuits on Other Building Sites

    A Chicago developer with plans to develop the ex-YMCA property on Clybourn Ave. and Halsted St. is fighting foreclosure lawsuits on two nearby properties.

    PNC Bank filed three foreclosure suits against ventures of Structured Development LLC, seeking $15.8 million in total. The properties in question are a 2.5-acre site that is the former home of White Way Sign Company at 1317 N. Clybourn Ave., and a 2.3-acre lot at 1401 N. Kingsbury that was formerly a Bowman Dairy facility.

    PNC also filed to foreclose on another Structured Development property at 211 N. Clinton Street. The building is a former Chicago & Northwestern Railway Power House converted by Structured into offices and restaurants. Structured defaulted on an $8.6 million construction loan it took out in 2007 to finance the project, according to the suit.

    National City Bank originally made the loans before it was acquired by PNC in 2008. Structured Development plans to pay off the loans by selling one property and refinancing two others according to a principal at the firm. Structured has secured a loan to settle the debt with PNC in full.

    PNC alleges the monthly mortgage payments were missed in summer of 2010. Structured purchased two of the properties in 2007 and 2008, at the peak of the real estate bubble.

    The imploding of the real estate market caught both individuals and corporations off-guard. Unfortunately, for many, there is no going back, only forward. There are legal options for those who are in foreclosure.

    Benjamn Legal Services – Chicago foreclosure attorney

  • TD Bank Sued by Bankruptcy Trustee Liquidating Rothstein Law Firm

    The bankruptcy trustee in charge of liquidating the Rothstein Law Firm has sued Toronto Dominion Bank for allegedly assisting a $1.2 billion Ponzi scheme run by the former law firm chairman.

    Scott Rothstein pleaded guilty to five counts of racketeering, money laundering and wire fraud in January 2010. He also admitted he sold investors interests in bogus settlements in fake sexual harassment and whistleblower cases. He received a 50-year sentence in prison.

    The bankruptcy trustee, Herbert Stettin, says the bank’s authorized agents let Rothstein use its name, facilities and accounts to deceive investors. He accused the bank of ignoring red flags.

    “Td Bank played a central role in this massive fraud by giving Rothstein’s settlement program the appearance of legitimacy,” Stettin said in a filing in U.S. Bankruptcy Court.

    The law firm of Rothstein Rosenfeldt Adler PA went under when other attorneys in the firm found evidence of Rothstein’s illegal side business. Rothstein said he used the law firm to run a scheme that financed his lavish lifestyle and let him buy political insurance.

    A spokesman for TD Bank says they plan to aggressively defend against the lawsuit brought on by the bankruptcy trustee.

    It is entirely possible that the Ponzi scheme has been around in some form long before Charles Ponzi brought it to light, and there will always be greedy people who will try to use Ponzi schemes to steal from others. Potential investors need to do their due diligence and investigate when something seems too good to be true. Otherwise, you might find yourself in bankruptcy.

    Benjamin Brand Services – Chicago bankruptcy lawyer

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