Talking Racine invites Dennis Montey on the show explaining the criminal complaint he filed on Racine, WI. Mayor John Dickert, City Administrator Tom Friedel and city Attorney Scott Lettneny. Fraud-Misconduct-Conspiracy-Criminal Intent. View the complaint. BELOW
The potential offense here is in failing to disclose the cash back to all parties in the transaction Where illegality does come into it is when there is another party to the transaction to whom it is not disclosed. In most real estate transactions, there is a lender involved. The City of Racine in this case. That lender is loaning what is usually a very large sum of money based upon the representations which were submitted to them. To intentionally and materially falsify those representations in order to persuade the City of Racine to make a loan they would not otherwise make is a textbook case of FRAUD. Would the Alderman have voted to make the loan if they knew Blackwell was receiving cash back? Loan fraud is, literally, a federal offense. Whether it’s done by lying (stating something that isn’t true) or by omission (failure to inform the Alderman of relevant facts) does not matter. Furthermore, due to the fact that fraud is a felony, there’s a good likelihood the city administration and City Attorney and possibly others knew of the cash back so add conspiracy in there – another federal felony offense.
The potential offense here is in failing to disclose the cash back to all parties in the transaction. Being public officials and misrepresenting taxpayer’s money is also “misconduct in public office”.
The reason this fraud happens is because if the cash back is disclosed to the lender, then they will treat the purchase price as being the purchase price less the cash back amount. If the purchase contract says $4.5 million, but the seller is giving the buyer $450,000 back, it isn’t really a $4.5 million purchase price, is it? Net to the seller is only $4,050,000 Net cost to the buyer is only $4,050,000. That looks like a $4,050,000 piece of property to me, not a $4.5 million one. The taxpayer lender will take the same point of view, and base all of their calculations off of a $4,050,000 purchase price at most. Note: The city website has the sale price at 4.5 million.
The second part of the conspiracy is the buying back of the property from the grantee (Blackwell) and paying for the delinquent taxes and outstanding contractor bills once the original kickback money was gone. Watch https://youtu.be/ugMxrFhns1I Was this part of the loan agreement and loan extension to Blackwell? The alderman may have voted to allow the grant from the DNR but, were they informed of how the proceeds were disbursed? Was the DNR grant being misused and the administration using the grant to cover the kickback funds from the original loan agreement? Would that not continue the cover-up and fraud/conspiracy/collusion? Did the DNR know?
A criminal complaint filed on Racine WI. Mayor John Dickert, City Administrator Tom Friedel and City Attorney Scott Lettneny.
Click on Link…… Complaint on Dickert,Friedel,Lettneny
Letter to city council ….This is a letter to all common council members from Eddie Diehl also an alderman at this time. Alderman Diehl voicing this concerns about the lack of transparency on the part of the city administration on the Machinery Row development.
Click on Link…. Letter-to-City-Council-11-5-14 (1)