Mortgage Fraudsters of Illinois

Obama Chief of Staff Rahm Emanuel is spotlighted for his past cashing in to the tune of $320,000 while on the board of mortgage giant Freddie Mac, which the government has since had to bail out with billions:

The board met no more than six times a year. Unlike most fellow directors, Emanuel was not assigned to any of the board's working committees, according to company proxy statements. Immediately upon joining the board, Emanuel and other new directors qualified for $380,000 in stock and options plus a $20,000 annual fee, records indicate.

On Emanuel's watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.

The accounting scandal wasn't the only one that brewed during Emanuel's tenure.

During his brief time on the board, the company hatched a plan to enhance its political muscle. That scheme, also reviewed by the board, led to a record $3.8 million fine from the Federal Election Commission for illegally using corporate resources to host fundraisers for politicians. Emanuel was the beneficiary of one of those parties after he left the board and ran in 2002 for a seat in Congress from the North Side of Chicago.

And US Attorney for Northern Illinois Patrick Fitzgerald announced mortgage fraud indictments last night.

The nine indictments announced today involved $1.4 million in loans. In a 10th case, the defendants secured about $4.2 million in loans.

The U.S. Attorney's office has filed mail and/or wire fraud charges against the following defendants:

• Mohammed Ali Moallem, 68, Bahidad Javid, 66, Donna Brooks, 41, Louis L. Javell, 36, Aysha M. Arroyo, 32, and Juan Gil, 45, Hakim A. Jaradat, 65, and Robert Goldberg, 88, Babajan Khoshabe, 68, and Sunil Kaushal, 48, all of Chicago;
  
• Abe Karn, 50, and Khalil Qandil, 45, of Oak Lawn;
  
• Hichem Julani, 40, of Palos Park;
  
• Daniel Lietz, 39, of Channahon;
  
• Marwan Atieh, 35, of Tinley Park;
  
• Ruwaida Dabbouseh, 58, of Glen Ellyn;
  
• Khaja Moinuddin, 64, of Bloomingdale;
  
• Mohammed Nasir, 52, of Glendale Heights;
  
• Michael Salem, 63, and Oscar Paredes, 28, of Park Ridge;
  
• Maryam Khan, 29, of Hickory Hills;
  
• James Kotz, 48, of Munster, Ind.;
  
• Siamak Safavi Fard, 50, of East Dundee;
  
• Sunil Kaushal and Noel Parmar, 39, of Skokie.

The sting was called Operation Madhouse. I'm sure we could come up with some more choice descriptions of this kind of behavior by these people.