More Dirt on Rezko Kicked Up from Obama House Deal
October 24, 2008 • 8:45PM

The lawsuit filed by fired Mutual Bank "whistleblower" Kenneth O'Connor in Cook County Circuit Court on Oct. 16, charging that his lower appraisal of the property adjoining Obama's house purchased by Rita Rezko was removed and replaced by a higher one, has opened quite a can of worms about Amrish Mahajan's Mutual Bank.

Obama paid Mrs. Rezko 1/6 of the price for the adjoining vacant lot to his home, which was $104,000, of $625,000. Conner said that the property should have been appraised no higher than $500,000. His appraisal was removed from the file—which was subpoenaed by a Grand Jury in October, 2006, and Conner was fired for questioning the higher appraisal. This raises possible obstruction of justice as well as fraud charges.

From 2002-2006, Mutual Bank lent more than $3.4 million to Rezko and his partners.

Mahajan got his start in banking in the 1970s, when Chicago Mayor Richard Daley sent him to see Alderman Donald Parrillo. His brother, Richard Parrillo, Chairman of the National Republic Bank of Chicago, hired Mahajan, and describes himself as Mahajan's "mentor and sponsor" ever since, according to a March 14, 2007 story in the Chicago Tribune. Mahajan soon became vice-president of the National Republic Bank of Chicago, under Parrillo. The father of the Parrillo brothers was a lawyer for gangster Al Capone. Donald Parrillo said he became lst Ward Alderman after another gangster, Sam Giancana, suggested he run, according to the Tribune.

In 1982, Richard Parrillo's National Republic Bank of Chicago was indicted on charges of laundering millions for a cocaine ring; the bank was put on probation for 5 years and fined $10,000. Neither Parrillo nor Mahajan was implicated. While working with Parrillo, Mahajan met his wife. Parillo incorporated a drug-screening company, Tech-Tox, in 1986 with Mrs. Mahajan and her father. Parillo sold his interest, and the company changed its name to K.K. Bio-Science in the 1990s, when it won a non-bid contract to screen clients of the Illinois Department of Children and Family Serivces, which it held until 2007, when Mrs. Mahajan was arrested on charges of overbilling and unpaid state and Federal taxes.

In 1993, Mahajan helped found Mutual Bank, which has lent more than $30 million to Parrillo and his family. The same bank lent $3.4 million to Tony Rezko.