Hanover Park Moves Money Out Of Investment Firm Hit By Fake Loan Scam
(CBS) -- One western suburb has moved millions of dollars it had invested with an Oak Brook firm that has been scammed, reports WBBM's Nancy Harty.
Hanover Park has been a client of the Illinois Metropolitan Investment Fund for well over a decade and had gotten good returns, says Mayor Rodney Craig. But after he learned the government fund had invested in fake loans, Craig says he felt uncomfortable with the Oak Brook firm's level of due diligence.
"I didn't want to keep our funds at risk and we shifted about $8.5 million out of IMET," he said.
The head of a Florida financial firm has been charged with selling millions in loans he claimed were backed by the USDA when they were not, leaving IMET essentially in default on $50 million in loans that Hanover Park and other suburbs had invested in.
Mayor Craig says the village will meet all of its obligations and the scam is more of a blow to its mental state.