Yachtsman Guilty In $4 Million Financial Institution Fraud Scheme

CHICAGO — Four years and five months after he was indicted over a 13-year scheme to fraudulently obtain millions of dollars from lenders, a federal jury found the owner of two Skokie-based businesses guilty of 10 counts of financial institution fraud.

David Izsak, 48, of Chicago, faces a maximum sentence up to 30 years in prison on each count. He is due to be sentenced in July.

While federal prosecutors plan to seek forfeiture of about $4 million of Izsak's ill-gotten gains, they did not seek to keep the 57-foot yacht — named the "Flying Lady" and featuring a pink stripper pole — that was seized by the FBI during the investigation.

In order to finance his lifestyle, Izsak submitted fake lien releases to the Cook County Recorder of Deeds, which allowed him to use those properties as collateral for new loans without repaying the others.

In one case, he even took out six mortgages on a single property, each time fictitiously releasing the earlier loan without paying it back, authorities said.

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Izsak's fraud scheme also allegedly involved identity theft of his elderly mother.

Prosecutors said he falsified paperwork to indicate that she was earning a significant salary working for the village of Skokie in order to get a loan for a Jeep Wrangler — even though she lived in a memory care facility.

Two brothers who were also charged in connection with the fraud, Yale and Jason Schiff, had previously pleaded guilty and are awaiting sentencing, according to court records.

As for Izsak's seized yacht, which he purchased in 2011 after submitting phony tax returns and lying about his income and debts to fraudulently borrow $360,000 toward its $450,000 sale price, federal authorities determined "the value of the vessel is insufficient to justify a sale."

In an April 2020 court order, U.S. District Judge Matthew Kennelly said Izsak could have his boat back as soon as he pays about $38,300 to the U.S. Marshals Service to cover the cost of storing and maintaining it since its seizure.

Earlier: 57-Foot Yacht Seized In FBI Probe Of Bank Fraud In North Suburbs