Chicago businessman convicted in $4M bank fraud scheme

CHICAGO — After a week-long trial, a Chicago businessman has been convicted of defrauding several financial institutions out of $4 million.

A jury convicted 48-year-old David Izsak on ten counts of financial institution fraud on Friday.

According to the U.S. attorney’s office, Izsak, a licensed real estate professional and the sole proprietor of Premier Assets Inc. and Premier Properties Enterprises, both based in Skokie, engaged in a scheme to defraud financial institutions by “obtaining residential loans through false statements, concealing the existence of unpaid loans, and falsely obtaining credit,” between 2005 and 2018.

The U.S. attorney’s office said Izsak submitted, or caused to be submitted, fictitious lien releases to the Cook County Recorder of Deeds, but the releases were not from the lender and the loans were not paid in full.

According to the U.S. attorney’s office, in one instance, Izsak sold a property to an unsuspecting buyer after causing a lien to be released. In another, Izsak obtained six mortgages on a single property and obtained a new loan after fictitiously releasing the prior loan without repaying it.

In 2019 federal authorities seized Izsak’s 57-foot yacht known as the “Flying Lady,” which was purchased through a loan he obtained by submitting fraudulent tax returns and financial information to a lender.

Each count of financial institution fraud could carry a penalty of up to 30 years in federal prison.

Izsak is set to appear for sentencing on July 9, 2024, and the U.S. attorney’s office said the government will seek forfeiture from Izsak of approximately $4 million.