Thaindian News

CHICAGO, ILLINOIS (BNO NEWS) – Two Illinois men were indicted on federal fraud charges related to financial transactions that allegedly caused the former CIB Bank in west suburban Hillside to lose approximately $56 million, prosecutors announced on Monday.

Romel Esmail, 50, of Chicago, and Bassam Haj Yousif, 42, of Oak Park, were each charged with two counts of bank fraud and three counts of making false statements in bank loan documents. Esmail is currently at large.

Esmail and Yousif allegedly operated various businesses, including a real estate investment venture, a construction company, a land trust and holding companies. They asked for bank loans to finance projects they were undertaking.

Form October 1999 and September 2003, the defendants caused and attempted to cause CIB Bank to lend them money to purchase and develop property by falsely representing the sales price and their cash equity positions, and then to lend them additional funds by falsely representing that the money was being used to pay development expenses.

Both men purported to purchase and develop two Loop residential buildings. In 1999 they asked for a $13 million loan for purchasing and developing a building in 6 North Michigan. The defendants falsely represented that the purchase price was $17 million, claiming that the will provide at least $4,262,500 of the total price. However both men knew that they closed the deal for $13 million.

To avoid suspicion, the defendants presented to CIB Bank a fraudulent purchase agreement stating that they bought the building for over $17 million from a fictitious seller. In 2000, Esmail and Yousif got additional loans from CIB Bank for a total amount of $8.5 million to pay for demolition, clean up and construction expenses to 6 North Michigan. The defendants allegedly used $3.6 million to pay for personal expenses.

In 2000 and 2001, Esmail and Yousif continued to defraud CIB Bank. First they applied for an $8 million loan to purchase and develop a building in 59 East Van Buren through two other companies they controlled. Finally, in 2001 both defendants applied and obtained a $44 million construction loan to fund the renovation and conversion of 6 North Michigan into condominiums, as well as to pay off the original acquisition loan and the two subsequent demolition and clean up loans.

Esmail and Yousif face a maximum penalty of 30 years of prison and a $1 million fine for each count, if convicted.