* AP…
A shell company linked to embattled U.S. Rep. Aaron Schock, R-Peoria, paid a political donor $300,000 last year for a commercial property in Peoria then took out a $600,000 mortgage for the property from a local bank run by other donors, Illinois state and county records show. […]
According to tax and county land records obtained by the Peoria Journal Star and reviewed by the AP, a company managed by Schock paid $300,000 last May to buy a commercial property owned by Jeff Green, a wealthy Peoria car dealer who has contributed at least $12,000 to the Illinois Republican’s congressional campaigns and who still owns a larger land tract next to Schock’s. The lawmaker then signed a mortgage application with a local Peoria bank for $600,000 - twice the listed price of the property now owned by his Illinois company, Menards Peoria LLC. Its headquarters was listed as Schock’s home in Peoria.
Banks typically limit mortgage loans to less than the full value of a property. It was not immediately clear why Schock sought such a large loan, whether there were other components of the deal or how he was awarded a mortgage loan twice the size of his purchase price. Local records did not show the bank’s appraisal value for the property. […]
Schock has created several shell companies as vehicles for his real estate moves, but it was unclear why he used the name “Menard” in his purchase of the Peoria property from Green.
A commenter offered a possible reason for the shell company’s name yesterday…
A recorder search shows a $600,000 dollar mortgage in the Menards Peoria LLC name for the old lumber yard building behind the old Menards on Pioneer Parkway in Peoria. That building is owned by Jeff Green.
* And that isn’t the only connection to the car dealer. Green is the person who flew Schock around in his private plane. According to the Sun-Times, Schock paid Green’s dealership $73,896.96 for a new Chevy Tahoe last July and traded in his 2010 Chevrolet at the same time, which was a couple months after buying the land from Green.
I went to Chevy’s website today to “build my own” 2015 Tahoe. I added every option I could find and came up with an MSRP of $64,849.
Maybe I did something wrong. Maybe I skipped over an option. Maybe there were options available last July that aren’t available this year. Maybe there was a big price change. Maybe there were some extra dealer add-ons. Maybe I didn’t figure nearly enough state and local sales taxes. Maybe there was a separate payment for the trade-in. I dunno. You can try it yourself. It could very well be nothing at all…
Reached by telephone at his Peoria office, Green said: “Ninety percent of the stuff out there is just a lie.”
Either way, we’re not talking big bucks here. Obviously, the more interesting story is the original land price compared to the subsequent mortgage. It’s just an odd little thing.
- Kippax Blue - Tuesday, Mar 17, 15 @ 11:42 am:
All in all it’s just another brick in the wall.
- Boone's is Back - Tuesday, Mar 17, 15 @ 11:43 am:
Yeesh.
- Juice - Tuesday, Mar 17, 15 @ 11:43 am:
Rich, I did the same thing yesterday on building my own Tahoe and was able to get up to around the price that Schock paid. Now, that included a lot of extras that I can’t possibly understand why someone in their right mind would want to shell out extra money for. But I digress.
- How Ironic - Tuesday, Mar 17, 15 @ 11:44 am:
“Reached by telephone at his Peoria office, Green said: “Ninety percent of the stuff out there is just a lie.”
Well then Mr. Green…let’s have a chat about the 10%. Because if just 10% of the shady dealings are legit…Aaron is still in a heap of trouble.
That’s like saying “Hey, that guy stole 10 Million dollars!” And his attorney says “90% of that figure is a lie!”
- Formerly Known As... - Tuesday, Mar 17, 15 @ 11:45 am:
It is an odd little thing.
Underpaying for land but overpaying for the car is also odd.
- walker - Tuesday, Mar 17, 15 @ 11:46 am:
Did Schock have it armored to protect him and his Presidential lectern?
Seriously, hard to be in the RE development game in most any district, without dealing with some big GOP funders.
- Formerly Known As... - Tuesday, Mar 17, 15 @ 11:47 am:
Did they call Tony Rezko and Barack Obama before making this land deal? /s
- Oswego Willy - Tuesday, Mar 17, 15 @ 11:47 am:
Another day of Schock being unable to get ahead of anything.
That might be one of the most “impressive” aspects of this takedown; it’s relentless, its constant, and Schock still can’t get ahead of what was yesterday, let alone “new stuff”.
- Formerly Known As... - Tuesday, Mar 17, 15 @ 11:51 am:
==let’s have a chat about the 10%==
He said 90% of the ==stuff out there== is a lie. That does not mean the other 10% was ==shady==, only that there is a lot of inaccurate ==stuff out there==.
- Just askin' - Tuesday, Mar 17, 15 @ 11:52 am:
I was wondering what today’s Schock story would be!
- MrJM - Tuesday, Mar 17, 15 @ 11:55 am:
We are talking about Aaron Schock — maybe it was a new Chevy and a trip to Tahoe?
– MrJM
- hisgirlfriday - Tuesday, Mar 17, 15 @ 11:56 am:
Dear nrcc, if I pop you some popcorn can I get a well funded primary challenge in my district so I have a chance at being represented by a rep not wasting all his time fighting off ethics complaints or prosecutors the next two years?
- Wordslinger - Tuesday, Mar 17, 15 @ 11:58 am:
A wise man told me the other day you’ll know Schock’s in real trouble when the stories stop mentioning “Downton Abbey.”
I think that day is here.
That’s a lot of money flying around the table in many transactions among a small group of pals. One of those pals is in the majority on the House Ways and Means Committee.
The questions become: who’s taking the money off the table, where is it going and are they reporting it properly?
- Team Sleep - Tuesday, Mar 17, 15 @ 11:59 am:
I don’t normally care, but when I saw the cost of Congressman Schock’s vehicle I realized that it approached what I paid for my first HOUSE.
- In the Middle - Tuesday, Mar 17, 15 @ 12:04 pm:
What on earth did he do with the extra $300k?!
Why’s he using shell companies?
And what bank approves a loan for twice the value of a property?
- Graduated College Student - Tuesday, Mar 17, 15 @ 12:07 pm:
@hisgirlfriday
You will get Darin LaHood and that Jesus Freak for primary challengers and you will like it!
- Nick Naylor - Tuesday, Mar 17, 15 @ 12:07 pm:
Shell companies can only lead to trouble if you are a Member of Congress. It certainly implies you’re trying to hide something.
- Nick Naylor - Tuesday, Mar 17, 15 @ 12:11 pm:
=we’re not talking big bucks here=
You’re correct, we aren’t talking “big bucks” here. But at what dollar amount is it OK for a Member of Congress to do the wrong thing? Isn’t the answer “zero”?
- Stones - Tuesday, Mar 17, 15 @ 12:12 pm:
Where there is smoke there is fire.
- Ghost - Tuesday, Mar 17, 15 @ 12:13 pm:
Rich remember the money laundering thing in spfld a while back. people would by houses for 50k (actual value) and resell them for 75k. maybe this is a similar thing in reverse.
- Norseman - Tuesday, Mar 17, 15 @ 12:14 pm:
Another example of when a politician’s humongous ego convinces him/her that they are free to use their position for financial gain.
- How Ironic - Tuesday, Mar 17, 15 @ 12:15 pm:
@FKA:
“He said 90% of the ==stuff out there== is a lie.”
And the implication then is that 10% of ISN’T a lie.
“That does not mean the other 10% was ==shady==,”
Baloney. If he said 100% of it was a lie, then we can talk. When you declare that only 90% is a lie, what about the other 10%?
“only that there is a lot of inaccurate ==stuff out there==.”
Define inaccurate. As in conceptually all of the information out there is ‘correct’ but perhaps some of the details are imperfect?
Spin away FKA. If your closest friend’s best defense is “Well 90% of the info is a lie”, that’s not a very good defense.
- Arthur Andersen - Tuesday, Mar 17, 15 @ 12:19 pm:
Rich, you may have missed the tasteful $2995 22″ wheels. Took me two tries to get it, but I came up with $67.5 for the Tahoe and $73.8 after tax license and “doc fee.”
But who pays sticker for a Tahoe, especially from his buddy?
- A guy - Tuesday, Mar 17, 15 @ 12:19 pm:
I remember an old Chicago Detective telling me once, “Man, it’s hard to be a drug dealer. You never go anywhere or do anything where there aren’t eyes all over you. You just never know where the danger is coming from, but you’re always, always aware it’s there”.
Man, it’s hard to be a Congressman with a target on you….
It ain’t the same, but it sure looks like it.
- vole - Tuesday, Mar 17, 15 @ 12:21 pm:
check out the article in Crain’s. “Shock’s company paid another $450,000 for the rights to existing warehouse tenants’ lease payments.”
- hisgirlfriday - Tuesday, Mar 17, 15 @ 12:23 pm:
To the “big bucks” discussion…
How much was the bribe Derrick smith was prosecuted over? Seems like a lot less than schock and pals are possibly skimming off the top.
- Just an Old Guy - Tuesday, Mar 17, 15 @ 12:23 pm:
Like I said before, when CAT gets tired of his BS, he is outta here.
- Formerly Known As... - Tuesday, Mar 17, 15 @ 12:46 pm:
@How Ironic
No spin. Schock’s actions look suspicious. With all this smoke, there is likely fire somewhere.
If 90% of something is a lie, then 10% is the truth. That does not mean that 10% is ==shady== or clean. It just indicates 90% of the stuff out there is false and 10% is true.
The only spin here is making assumptions about what this guy meant or whether the 10% that he regards as true is exonerating, incriminating or irrelevant.
- One day at a time - Tuesday, Mar 17, 15 @ 12:53 pm:
FWIW in the Peoria zip code for a 2015 Tahoe, 4WD, LTZ trim and all the super option pkgs. lists MSRP of $73850. Truecar.com estimate is $69,793, add sales tax of 8.250% or about $5756.00 for approx total of $75,500.
So he got a discount by paying $73,896…
Right….
Wonder what happened to the actual trade-in value for his 2010 Chevy, maybe he paid them to haul it away?
- Walter Mitty - Tuesday, Mar 17, 15 @ 1:01 pm:
I will bet you this… This friend who is an astute businessman… Has contacted his attorney… He won’t be caught with anything more than No comment now… His attorney probably contacted him first… The billable hours have begun…
- GV - Tuesday, Mar 17, 15 @ 1:17 pm:
And……he’s done.
- partys over - Tuesday, Mar 17, 15 @ 1:18 pm:
He gone.
- Anonymous - Tuesday, Mar 17, 15 @ 1:19 pm:
I’m sensing an update in the near future on this issue.
- Anonymous - Tuesday, Mar 17, 15 @ 1:20 pm:
Your update is that he resigned
That escalated quickly…..
- Nick Naylor - Tuesday, Mar 17, 15 @ 1:22 pm:
Schock announced he is resigning.
- Soccermom - Tuesday, Mar 17, 15 @ 1:22 pm:
This was stunning.
- Bigtwich - Tuesday, Mar 17, 15 @ 1:22 pm:
Headed for Bolivia.
- Nick Naylor - Tuesday, Mar 17, 15 @ 1:23 pm:
Congrats to Congressman select LaHood.
- Lincoln Parker - Tuesday, Mar 17, 15 @ 1:30 pm:
Wordslinger nails it again:
###- Wordslinger - Tuesday, Mar 17, 15 @ 11:58 am:
A wise man told me the other day you’ll know Schock’s in real trouble when the stories stop mentioning “Downton Abbey.”
I think that day is here.###
- How Ironic - Tuesday, Mar 17, 15 @ 2:00 pm:
Well I guess in the end, it was the 10% that got him.
- SAP - Tuesday, Mar 17, 15 @ 2:37 pm:
Schock could have been under water on his trade in and added the old loan balance to the new loan.
- flea - Tuesday, Mar 17, 15 @ 3:18 pm:
Next?
- Dr X - Tuesday, Mar 17, 15 @ 3:58 pm:
It would be informative and interesting if the role and power and influence of the Green family were explored further.
- One day at a time - Tuesday, Mar 17, 15 @ 4:08 pm:
Who knew that shady car deals would schwreck the Schrock….
That and other dalliances in the world of low finance.
- Streator Curmudgeon - Tuesday, Mar 17, 15 @ 7:29 pm:
Green said: “Ninety percent of the stuff out there is just a lie.”
Not knowing much about the real estate business, what is the purpose of shell corporations?
- FormerParatrooper - Tuesday, Mar 17, 15 @ 10:25 pm:
I believe he resigned because there is a whole lot more to the story. He cannot be examined by the ethics oanel now he is a former member. All this little stuff added up. I still believe there is something bigger out there.
- Wordslinger - Tuesday, Mar 17, 15 @ 11:38 pm:
FP, the OCE is a joke. You think Porter Gross and and Judy Biggert were hot on the trail with a deep dig investigation?
All they do is make recommendations to the Committee on Ethics, anyway, which is also a joke.
Schock hopes that by resigning the federales will move along. No FBI, No IRS, no federal prosecutor who wants to put a pelt on the barn wall.
I suspect Schock’s real estate partners and car dealers are hoping the same thing, and advised him of that.
No player wants that kind of heat. Hard to stand up to, no matter your reputation as a pillar of the community.
Ask Stu Levine.
Ask Tony Rezko.
Ask Chris Kelly.
- FormerParatrooper - Wednesday, Mar 18, 15 @ 7:24 am:
Word, I agree. I think even though the OCE is a joke, more things would have seen the light of day. The Feds will probably take a passing interest,IMHO.