Wednesday, April 03, 2013
The informant reported to be in the center of the Rockland County/New York City corruption fiasco currently rocking the political universe recently pled guilty to charges pertaining to a default on a loan of over $100 million to Citigroup.
Morris Stern of Monsey, also known as Moshe and Mark Stern, was in the center of a famous case which earned him a 2010 headline in Forbes Magazine as “Citigroup’s Bad Boy: how an untested businessman got a $126 million loan–and personally owes every dime of it.”
The bad deal was made in 2007 when Stern was only 34. His case reads like a look into the world of bad business practices that dominated banking prior to the 2008/2009 financial meltdown.
“Several banks were pitching me at the same time,” says Stern. “Every bank, including JPMorgan Chase and Deutsche Bank, wanted product.”
Stern bought 11 shopping malls with the $126 million and they promptly floundered. Ultimately he filed for bankruptcy and Citigroup only recouped $40 million of the money.
During the deal, Stern forged the signature of another supposed backer, and this and other allegations led to federal charges against him and ultimately to his becoming an informant for the feds.
Stern is a Hasidic Jew who was born in Argentina. He began his career in the garment industry and also is reputed to be a local politico, bundling cash donations to various different candidates and playing other roles of influence.
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