SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Ford pleads not guilty as attorney hints at defense strategy

Wednesday, Dec 12, 2012

* Indicted Rep. LaShawn Ford pled not guilty yesterday. His attorney hinted at the defense he’ll use

The Nov. 29 indictment alleges Ford obtained multiple advances by making false statements about his intended use of the bank funds. The indictment also alleges that Ford diverted bank funds toward personal use: for car loans, credit cards, other mortgages owed by ShoreBank, payments to a casino in Hammond, and his 2006 campaign for state rep.

[Tom Durkin] did not go into specifics of Ford’s defense, but contended federal prosecutors may be hinging their case on a mistake “on a financial form” submitted to the bank.

“These cases are usually about numbers put in a form and there are questions about whether banks relied on it or not,” Durkin said. “My point is that … when businesses and corporations submit loans, there is often a lot of mistakes made on numbers. And there are questions whether that was material the bank relied upon. I believe we are going to show that this bank was relying on his good character and his person.”

* Durkin also had some harsh words for prosecutors

“I think there should be questions raised as why at this stage of the game these charges would be brought five to six years later,” Durkin told reporters after Ford’s arraignment at the Dirksen Federal Building.

“These are garden variety bank fraud charges that have nothing whatsoever to do with his public office,” Durkin added, expressing puzzlement that his client is the only person to be linked with the bank’s failure.

“I am not aware of any other prosecutions coming out of that bank,” Durkin said. “Why the only person that is prosecuted is a popular African-American legislator. I don’t understand it.”

Interesting points.

* Several people showed up for the court proceeding

In an unusual scene, about 50 people cheered and clapped as Ford entered the downstairs lobby after his brief arraignment. The crowd surged around the 40-year-old West Side lawmaker. […]

As he was exiting the courthouse, Ford appeared visibly moved by the show of support, turning briefly to compose himself before he stood before the television cameras.

Among Ford’s supporters were the president of Christ the King High School, a Catholic priest, community activists and a 71-year man with gout leaning on a cane who took the bus to be there.

“I know he did nothing but good,” said West Side resident James Ruffin, 71, who has campaigned for Ford. “He’s always down there on the spot to help you out. I had to do something to support him.”

* And the Oak Park Wednesday Journal has given its readers three reasons to reserve judgement in the case

There are a large number of people on both the West Side and in Oak Park — the communities he represents in Springfield — who are standing with Ford in these first days since his indictment. These are people we know and whose judgment we respect.

The charges against him do not relate to his six years in office. Unlike most of the political thugs who get indicted and convicted around here, no one is accusing him of selling out his office for profit. These charges tie back to Ford’s days as a Realtor and home rehabber and how he handled bank funds.

We respect his body of work as a legislator. And, we’d suggest, given the quiet emanating from Springfield, that his colleagues there are willing to be patient for a fair hearing of his case. This reaction is in marked contrast to the near instant demands that fellow West Side legislator Derrick Smith be expelled from the House almost immediately after his indictment.

Thoughts?

- Posted by Rich Miller        


13 Comments
  1. - amalia - Wednesday, Dec 12, 12 @ 9:59 am:

    “…garden variety bank fraud charges….”

    well, I can tell you that I’m not participating in that kind of thing on my bank loans. sounds like he was seen gambling, someone took a look at his finances, and there goes the charges.


  2. - L Y O - Wednesday, Dec 12, 12 @ 10:04 am:

    “I think there should be questions raised as why at this stage of the game these charges would be brought five to six years later.”
    I know! Totally right! He was able to avoid detection for a REAL long time. Just let him go. He’s really super great at his job. And he’s really nice. And handsome. And his constituents and co-workers love him. And he drives a normal car not a flashy car. Let him go. Let him go and apologize.


  3. - Anonymous - Wednesday, Dec 12, 12 @ 10:09 am:

    Is the argument that if you’re a good public official, it’s ok if you commit garden variety bank fraud?

    More seriously, it looks ilke the Obama Administration made a conscious decision in 2009 not to prosecute top officials of the big financial companies because they believed correctly or incorrectly that it would bring down the financial system.

    Was that decision wrong and should many more of the weasels who ran the banks have been prosecuted? In my view, yes.

    Does that mean that Ford should get a pass IF he committed bank fraud? Prosecution decisions are never entirely fair. All criminals aren’t caught. Prosecuting some folks who are in the public eye has some deterrent value.

    There are a lot of sometimes conflicting judgments involved in making prosecution decisions. Until we see the evidence of what Ford actually did, it’s too soon to have an opinion on whether the U.S. Attorney’s Office made the right call here.


  4. - walkinfool - Wednesday, Dec 12, 12 @ 10:10 am:

    We have to wait and see where this goes. I am especially interested in potential witnesses.

    I really don’t know, but my gut tells me that bank lending officers and senior executives, who could be under Federal indictment for their own actions leading to the ShoreBank failure, are throwing their customers under the bus — and the Feds just selected a newsworthy one.


  5. - shore - Wednesday, Dec 12, 12 @ 10:18 am:

    How do they have time to do other kinds of criminals when elected Democrats keep getting arrested/investigated?


  6. - Plutocrat03 - Wednesday, Dec 12, 12 @ 10:28 am:

    Perhaps this is the first of a number of prosecutions of people believed to have defrauded ShoreBank. The ongoing post mortems of the banking collapse point to a substantial number of people borrowing money from banks for one stated purpose, using the proceeds for another and defaulting on the loans. Even if all the money was used as intended, Mr. Ford appears to have the means to be paying his loan back from other resources. If this is the case, all borrowers with the means to work on repaying their loans should be running around creating repayment plans.

    The other case is that he has ticked off someone who is connected and is being squeezed for that purpose, but that could not happen in Chicago - could it.


  7. - reformer - Wednesday, Dec 12, 12 @ 10:52 am:

    It’s remarkable the favorable coverage he has gotten. I can’t remember the last time someone under federal indictment got so many kudos. Let me add my kudos.

    This contrasts with the media excoriation of officials — take Joe Berrios for example — who have never been indicted.


  8. - Anonymous - Wednesday, Dec 12, 12 @ 11:05 am:

    On the other hand, Tom Durkin frequently defends cases by attempting to try the government when he knows his client is guilty. (So maybe we shouldn’t reserve judgment?)


  9. - wordslinger - Wednesday, Dec 12, 12 @ 11:12 am:

    “These cases are usually about numbers put in a form and there are questions about whether banks relied on it or not,” Durkin said. “My point is that … when businesses and corporations submit loans, there is often a lot of mistakes made on numbers. And there are questions whether that was material the bank relied upon.”

    Back in those days, banks and mortgage brokers were combing real estate records to make cold-call and direct mail appeals for refinancing.

    They were going for volume; they wanted to originate as many loans as possible, collect the origination fees and then sell them off to the Wise Men security bundlers.

    I refinanced my mortgage once, and the loan officer begged me to add $50,000 to the estimated value of my home and take a portion of it in equity. I never wanted to take out any equity; just a lower rate.

    When I closed, the bank sent some 21-year-old over to my house, at night, to sign the documents. I’d left my wallet at work and had no ID. She let me use my public swimming pool pass as ID to refinance.

    I wasn’t attempting to defraud anyone, but you know what? The banks sure would have loved for me to put down all sorts of BS on the forms to make the loan.

    They weren’t going to hold the paper, anyway, and as long as values continued to climb, who cared.


  10. - Frank - Wednesday, Dec 12, 12 @ 11:33 am:

    There are a couple of things at play here. First, Ford is pretty popular among his fellow legislators and among activists on the West Side. Sometimes, being a nice guy buys you the benefit of doubt.

    Second, there seems to be some legitimate questions about selective prosecution. Ford’s defense attorney did not articulate it well, but c’mon, there’s no doubt ShoreBank floated hundreds and maybe thousands of loosey-goosey loans like the one they gave Ford. In the easy-money/easy-credit days before 2008 they gave loans to anyone who could see over the counter at their branch office. And plenty of developers, real estate brokers, and rehab guys submitted paperwork with inflated reports of self-worth and pumped up appraisals… yet Ford is the only ShoreBank lendee to get indicted? Not to mention, as Carol Marin pointed out in a recent column, there is a long line of Wall Street bankers and brokers who did exactly what Ford is accused of doing, only on a much grander scale (billions instead of thousands of dollars in fraud,) but none of them are heading to prison.

    Don’t get me wrong, if Ford broke the law or filed deceptive paperwork he has to pay the price. (Why not go after him and others in civil court to make them repay federally backed loans that defaulted?) It’s just that the federal law enforcement has earned our cynicism when it comes to how they’ve policed financial misconduct the last few years.


  11. - Anon - Wednesday, Dec 12, 12 @ 11:48 am:

    As someone who is familiar with LaShawn and works in bank fraud, these charges are being brought only because as a legislator he had a target on his back because it makes good press for the US Attorney’s office. If he were not a public figure, this would have never happened. The only action that may have been taken would have been the Bank may have pursued him civilly for willful misrepresentation - only if he did not pay them back.

    My guess would be that the reason this came up now is the Feds realized he is a politically exposed person and looked back to see if there was any suspicious activity reports filed by Shorebank on LaShawn in the past, or looked closer into his files as they too are political.

    My guess would be he filed amended tax returns after obtaining the line of credit, did not update the bank, and got careless handling personal and business funds. It sounds like he paid the Bank back. There is far more substantial bank fraud reported daily the US Attorney’s office should be pursuing - but instead they waste time, resources, and money on this. Regardless of the outcome, his career as a real estate investor will be impacted as he will have a hard time ever obtaining a loan again.


  12. - Anon - Wednesday, Dec 12, 12 @ 12:02 pm:

    As a follow up to the Anon comment above, “These cases are usually about numbers put in a form and there are questions about whether banks relied on it or not,” Durkin said. “My point is that … when businesses and corporations submit loans, there is often a lot of mistakes made on numbers. And there are questions whether that was material the bank relied upon.”

    If ShoreBank’s loan proposal for this line of credit contains representations LaShawn was well known, trusted, and had a strong banking history with senior management - I see it being extremely difficult to prove any misrepresentation made on a form was material the bank relied upon when the loan committee approved the loan.


  13. - Former Program Specialist - Wednesday, Dec 12, 12 @ 11:03 pm:

    Indicting Ford is going to discourage business people from running for public office. A reasonable person is not going to want to go through life with a target on their back. Do we really want a legislature without people who have had to make payroll, done a business deal, built a business from scratch, etc?

    There is also a certain unfairness to it. What happened to the people who ran the patronage/contribution scheme that Mary Lee Leahy successfully fought all the way to the U.S. Supreme Court? Today high ranking members of then Gov. Thompson’s administration from 1883 are Federal judges (two of them…including the one who oversaw the Blago and Cellini trials) and the retired head of one of Chicago’s largest law firms (Thompson himself).


Sorry, comments for this post are now closed.


* Question of the day
* Some economic development food for thought
* AFSCME responds to JT: Stop using state email to "spread your falsehoods and fear-mongering"
* Rauner not thrilled with Medicaid block grant idea
* Progress?
* Pawar talks about his plans and addresses the "Madigan question"
* Today's number: 50 years
* *** UPDATED x2 - Rauner admin responds to SEIU *** Rauner blasts basic child care service as "institutionalized brain damage"
* *** UPDATED x1 *** GOMB says Senate budget plan is unbalanced
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............
<


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* ZTE agrees to pre-install APUS Booster+ on new smartphones
* ‘Super Mario Run’ finally comes to Android in March
* Apple Officially Ends iPod Nano Replacement Program, but Still Honoring Requests
* AT&T boosts LTE capacity by 400% in Washington D.C. ahead of Inauguration Day
* Assistant Showdown! How do Siri, Cortana, Google Assistant, and Alexa stack up today?
* SeatGeek’s new Pano feature gives ticketbuyers a 360-degree view of the stadium
* Samsung’s Galaxy S8 Bixby assistant could even perform visual searches

* Collins named fourth-best catching prospect in MLB
* Raines gets Hall's call in final year on ballot
* The end of Raines' career was noteworthy, too
* Raines gets Hall's call in final year on ballot
* Raines among trio elected to Hall of Fame
* White Sox rebuild bit different than others
* WATCH LIVE: HOF announcement coverage

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Rauner not thrilled with Medicaid block grant i.....
* Opinion: AFSCME strike vote is an insult to mid.....
* Schoenburg: Obama’s legacy ‘forever tied’ to Sp.....
* Chicago educators and activists press for more .....
* Illinois Governor's Office: Senate Plan Won't E.....
* Illinois Governor's Office: Senate Plan Won't E.....


* The Latest: Anesthesiologist new U of I trustees' chairman
* East Chicago to renew emergency request over lead troubles
* U of Illinois looking to increase enrollment by 15 percent
* Details of University of Illinois growth, enrollment plans
* 1 of Illinois' 1st female judges looks back on her career
* 4 officers suspended for dashcam failures in McDonald death
* EXCHANGE: Joliet police K-9 retires after serving 9 years
* 4 cops suspended for dashcam failures at McDonald shooting
* Peoria airport ridership total down 3 percent in 2016
* Nature museum's alligator snapping turtle to get bigger home

* A new tax on sodas, sugary drinks? It might be part of Illinois budget deal
* U of I looking to increase enrollment by 15 percent
* Rauner budget office says Senate plan won't erase deficit
* Battle lines drawn over state tax on sugary beverages
* New state app aims to help students with career choices
* Battle lines drawn over sugary-beverage tax
* Illinois leaders split on attending Trump inauguration
* State attorney general alleges fraud at student loan company
* Eastern Illinois University may eliminate 5 academic majors
* Completion of Illinois 29 widening project 'big team effort'

* CSX surges as activists target railroad for overhaul
* Tadros to re-open some Bow Truss stores
* Downtown Winnetka residential project gets village OK
* How McDonald's changed America
* The medical app maker who thinks like a game designer—because he is one


* Moore: Michelle Obama sprinkled a little South Side magic
* Chicago cop accused killing unarmed man has to post no bail
* Federal watchdog sues TCF Financial over overdraft fees
* US ends probe of fatal Tesla crash without recall: AP source
* Kanye not invited to ‘traditionally American’ Trump inauguration
* Aurora man convicted of attempted murder stomped victim’s head
* PODCAST: Butler is turning into an elite closer – build around it
* Students, parents, teachers at NW Side school call for unity
* Police: Man wanted for two armed robberies in Waukegan
* Eugene ‘Eda’ Wade exhibit a doorway to his genius artwork


* Man found dead after Darien barricade situation
* Ex-wife at divorce trial says she hasn't applied for work since separation
* McDonald's rolls out new Big Mac sizes - Mac Jr. and Grand Mac - nationwide
* Will Jimmy Butler and Dwyane Wade be All-Star starters?
* Ex-Bear Charles Tillman says first child knocked him off his game
* Why feminists should accept Melania Trump
* For first time, CIA publishes guidelines for handling Americans' info
* Another location change for Chicago Women's March as larger crowd expected
* Aurora man guilty of attempted murder for stomping on a man's head
* How are the new Mac Jr. and Grand Mac at McDonald's? We dig in


The widget AQL4JYGHIY powered by Feed Informer does not exist.


* A new tax on sodas, sugary drinks? It might be part of Illinois budget deal
* Schoenburg: Obama's legacy 'forever tied' to Springfield
* U of I looking to increase enrollment by 15 percent
* Rauner budget office says Senate plan won't erase deficit
* Battle lines drawn over state tax on sugary beverages
* New state app aims to help students with career choices
* Our View: A complicated legacy for Obama
* Battle lines drawn over sugary-beverage tax
* Illinois leaders split on attending Trump inauguration
* State attorney general alleges fraud at student loan company


* Peoria airport ridership down 3% in 2016
* Noon update: Rain, flood warnings, most wanted and mall sold for $100
* Murphysboro man sentenced to prison for manufacturing meth
* Southwest Champaign bank robbed
* Marion Chamber set to host annual Awards Banquet and Auction on Friday
* Marissa man sentenced to prison for manufacturing meth
* Apartment building fuels jump in home construction
* Rescuers search for 30 after avalanche hits Italian hotel
* California getting soaked with series of storms
* The latest: Umbrella policy revised for Trump inauguration


* Video of alleged animal abuse on set of 'A Dog's Purpose' sparks boycott
* Raiders file papers to move from Oakland to Las Vegas
* Diamond Lake District 76 taxpayers to vote on $11.4 million project
* East Chicago to renew emergency request over lead troubles
* Bruce Springsteen gives farewell concert for Obama staffers

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin, Duckworth, Bustos Will Not Boycott......
* St. Jacob to receive federal money to help......

* Former San Bernardino County supervisor's ......

* Rauner optimistic in first 2017 Facebook Live presentation
* Illinois Congress members boycott Trump Inauguration
* John Lewis and Donald Trump.
* Tony at the Red Line
* Schakowsky tells Evanston crowd: Welcome to the Resistance!
* Capital Area REALTORS® chooses Edwards Place as bicentennial charity
* Morning Minute: Mortgage rates fall for third week
* BPN General Meeting & Holiday Party, January 23
* Tribune reporter's last softball question for President Obama
* Dream.


* 2017 Illinois Tax Filing Season Begins Monday, January 23rd - IDOR fraud efforts resulted in over $20 million in savings in 2016
* Reality Check App Puts Career Planning Tools in the Hands of Youth, Job Seekers - Going Mobile Initiative in Illinois Making Rapid Progress
* Governor Discusses Importance of Apprenticeships
* Governor Introduces Teams to Improve Student Success at Chicago State University - Creates Advisory Council to work with Board of Trustees on strategic plan
* Governor Rauner Announces Completion of New Illinois Route 29 Expansion - Joined federal, state and local officials to highlight four-lane highway improving safety and connecting Rochester, Taylorville




      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller