NEW YORK – Chicago’s Broadway Bank, which was owned by the family of Democratic U.S. Senate candidate Alexi Giannoulias and whose demise in 2010 contributed to his defeat when he ran for President Barack Obama’s U.S. Senate seat, was weakened by bad loans to recently murdered Brooklyn developer Menachem “Max” Stark according to the New York Post.
Stark’s corpse was found in a Great Neck, NY dumpster. The millionaire Hasidic real estate developer was kidnapped days earlier outside his real estate office in Williamsburg.
“Two unpaid loans…were among 17 bad bets that spelled $104 million in losses for Chicago’s Broadway Bank before it was shut down by the feds in 2010, court papers show,” according to the Post.
Giannoulias served as the Illinois State Treasurer and was the head of the Greek Americans For Obama Committee.
Demetris and George Giannoulias, ran the bank where their brother Alexi once serve d as and at one time served as chief loan officer for Broadway before being elected state treasurer
“The one-year, interest-only loan was secured by a second mortgage on a 74-unit apartment building in Williamsburg that Stark and Perlmutter bought for $29 million earlier in 2007, the Chicago federal court filing says…But Broadway lost any chance of getting repaid when Stark and Perlmutter ‘defaulted on the first mortgage,” the suit says’ according to the Post.
Stark and Perlmutter were also unable to pay loan from Broadway Bank for 6.2 million loan for construction money in February 2007 to develop The Bedford Lofts in South Williamsburg, Brooklyn.