Glenview, Other Suburbs Attempt to Recover Funds

Fraudulent loans totaling $179 million have Glenview and dozens of other Chicgo suburbs attempting to recover millions from what they had invested with the Illinois Metropolitan Investment Fund (IMET).

The Chicago Tribune reports Glenview Attorney Eric Patt stated to village trustees that the IMET retained Pennant Management Inc. as an investment adviser, which acquired loans later determined to be fraudulent from First Farmers Financial.

Of the 26 loans Pennant acquired from FFF, Glenview had invested $50 million and is now leading the charge to recover the funds among the other municipalities involved. The village approved an agreement in January to work cooperatively with IMET in “recovering and maximizing” the lost funds and agree not to make any claims or defenses during the investigative period.

Other public entities in the agreement include Hoffman Estates, Highland Park, Skokie, Lake County, Oak Park, Wheeling, Glen Ellyn, Elk Grove Village, city of Flora, Lake County Forest Preserve District and Deerfield.

Bloomberg Business reported the arrest of FFF CEO Nikesh Ajay Patel for the fraudulent loans. IMET has filed for intervening legal action to join in on a lawsuit against them.

Still, Glenview is frustrated with the lack of information regarding the recovery from IMET.

“IMET and Pennant did not do enough due diligence. Still, we’re all trying to work together in resolving this,” Patt said.

Read more via the Chicago Tribune