There's Our Pension Money!
- Remember months ago when the mayor's nephew, cousin or whatever the hell he was got a pile of our pension money to invest in some real estate venture? And holy hell was raised here and elsewhere that a number of the elected trustees went along with the scheme?
With the real estate market in the crapper, we were just wondering, what is the status of those investments? We're sure Daley's relative secured his money up front in the form of transaction fees or similar payments, along with a handsome payout if the investment did well.
Jeffrey Duerwachter isn't a player in Chicago real estate. He doesn't even own a home. Duerwachter, 39, lives with his parents in Wilmette.
He did OK last year at work, making $1,756 a week working on the set of the new Batman movie filmed in Chicago.
But he did even better investing, making a $413,000 profit by buying and immediately reselling a historic South Loop building that once housed the Chicago Defender, the city's biggest African-American newspaper. And he did it all in one day -- June 8.
First, Duerwachter paid $3.72 million for the building and a nearby vacant lot, both owned by the estate of Lev Stratievsky, a Russian immigrant who died in federal custody while he and his son, Boris, were awaiting trial on charges that they tried to launder money for Ukrainian drug dealers.
Then, Duerwachter resold the building and lot for $4.1 million to a company owned by Matthew A. O'Malley, a politically connected Chicago restaurant owner who had been negotiating to buy the property from Stratievsky.
O'Malley bought the property with three loans -- including $1 million in city pension funds managed by DV Urban Realty Partners, a company co-owned by Mayor Daley's nephew, Robert Vanecko, and one of Daley's key African-American allies, Allison S. Davis. This was one of the investments Davis and Vanecko made after their newly created company was hired to manage $68 million for five pension funds for city workers, police officers, Chicago teachers and CTA workers.
- Hey J-Fed? Did you blow a call into your FBI and DOJ buddies on this one?
- How much did the pension fund make with this very wise investment?