The Chicago Sun-Times reports:
A co-founder of Cardinal Growth — the venture capital company that bankrolled City Hall projects involving former Mayor Richard M. Daley’s son — has agreed to pay $1.5 million to the federal government, which seized the company four years ago for failing to repay $21.4 million it borrowed from taxpayers.
Robert J. Bobb Jr., a former federal prosecutor who co-founded Cardinal Growth, agreed to pay the U.S. Small Business Administration by last Friday, avoiding a battle in federal court. Bobb also agreed to cooperate with regulators hoping to recover more of the tax dollars that he borrowed to invest in various companies.
Besides Bobb’s payments, federal regulators have collected more than $6.6 million after liquidating Cardinal Growth’s investments, according to a report the SBA filed in federal court two months ago.
There's more:
Two years after the sewer deal, Cardinal Growth invested federal and private money in Concourse Communications, which got a 10-year contract from the Daley administration to install Wi-Fi service at O’Hare and Midway airports. The mayor’s son collected $708,999 for helping find investors, including Blair Hull, the wealthy commodities trader who was running for U.S. Senate, hoping for the mayor’s endorsement.
Patrick Daley made more than $1.2 million on deals with Cardinal Growth while his father was mayor, the Sun-Times has reported.
No word from Barack Obama, Eric Holder, or Debra Lynch on this story. For you rookies out there: unless you are connected to Barack Obama , SBA fraud on this scale will get you indicted. Just a reminder.
