Business & Tech
Yachtsman Sentenced For $3M+ Fraud Scheme In North Suburbs
A businessman based in Skokie was sentenced to five years in prison for multiple fraud schemed lasting from 2005 to 2018.
SKOKIE, IL — A Chicago businessman was sentenced to five years in prison this week for scheming to defraud multiple financial institutions in the north suburbs out of more than $3 million, the U.S. Department of Justice announced Friday.
Skokie-based real estate professional David Izsak used his businesses Premier Assets Inc. and Premier Properties Enterprises Inc. to commit fraud from 2005 to 2018 by obtaining residential loans through false statements, concealing the existence of unpaid loans and falsely obtaining credit, the DOJ said.
As part of the scheme, Iszak submitted or had others submit fictitious lien releases to the Cook County Recorder of Deeds that claimed to be from lenders stating the loans were paid in full. The bogus lien releases included fake names of attorneys and bank attorneys
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In one instance, after a lien was released, Iszak still sold the property to an unsuspecting buyer. In another instance, Iszak obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it.
One of these loans was used to obtain a 57-foot yacht, known as the "Flying Lady" and included a pink stripper pole on board, which was seized by federal authorities in 2019.
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“Izsak engaged in blatantly fraudulent conduct for many years,” Assistant U.S. Attorney Elly Moheb argued in the government’s sentencing memorandum. “The entire purpose of the scheme was to line his own pockets, so that he could live a lifestyle he didn’t earn.”
In 2023, a jury in U.S. District Court in Chicago convicted Iszak on 10 counts of financial institution fraud. His sentence was imposed on Tuesday during a hearing in federal court.
Two other individuals, Yale and Jason Schiff, were also convicted as part of the federal investigation. Yale was sentenced in January to three year in prison for fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions.
Jason pleaded guilty to causing a false report and statement to be made to the U.S. Department of Housing and Urban Development and was sentenced to three years of probation.
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