Giving Up The Ghost

The last time I wrote about Carlton Knight’s Dixie Highway property, the day to day operations had been taken over by a court appointed Receiver in December of 2007.

The Receiver really gave it a go.

Rents were collected and recommendations for repairs were made.

Some tenants were evicted, some were moved to other units and others continued to live in their current situation.

Make no mistake, the condition of the building was (and is) dismal.

But sometimes, no matter how much you want to make it happen, you’ve got to give up the ghost.

From the 13th report:
“We had come to the conclusion that given the condition of the property and the limited income we were receiving, it was better to vacate the property rather than keeping only a handful of paying tenants, which would have resulted in an operating deficit of at least $4,000/month.”

Holy Crap.

Even with loads of money the Receiver and Inland Bank couldn’t make that dog hunt.

I guess you need to know when to throw in the towel.

But the scary part is that the property didn’t get that way overnight.

At least that what the Receiver’s first and second reports said.

Do not make me detail the contents of reports three through twelve.

It’s just too jaw dropping.

And to think, people had to live in those conditions.

It just makes you shake your head.

Zing

About a month ago, the bricks came raining down from the façade on the Blackstone side of our building.




Yes, dear readers---we’re having façade issues again.

Except this time it was a different section.

Once again we were lucky that no one got hurt. But unlike the last time, our little mishap didn’t go unnoticed.

Hence the love note from the city.

How did I find out?

Easy---the city sent out the notifications to the last information that they had on file. Seeing that no one has bothered to file an annual report or bothered to change our registered agent with the state, the city decided to send notification to anyone they could find.

That included my address.

Now before I get on my soap box, I will acknowledge a few things in defense of my neighbors who are doing the heavy lifting.

The focus at the time was on paying off our existing special assessment and continuously following up on those members severely behind in their monthly assessments.

That hand you see being raised would be mine. Guilty as charged.

The rigors of dealing with association business and your own personal life has been known to drive a person batty. Trust me, I’ve been there.

Watching your lay about neighbors make excuse after excuse on why they either won’t or can’t help; listening to empty promise after empty promise can wear on your nerves.

I can understand the frustration for those of you who take the mantle of leadership upon your shoulders.

I can also understand why you’d want to slap the living dog piss out of your neighbors.

Nonetheless, the burden is yours to bear until you say you don’t want it anymore.

So as long as you control the money or are on the board---you have a fiduciary responsibility to act in the best interest of the association.

That means filing the correct paperwork with governmental bodies.

That means applying for the refuse rebate from the city.

That means following up on capital projects despite the fact that no one wants to hear about another special assessment.

Because when you don’t----well---you have our little situation.

I personally used to handle those initially insignificant tasks that come back to bite you in the ass but personal matters got in the way.

Then the unemployment.

Then I was told I was a bad neighbor.

At that point, I decided why should I use my talents and connections for people who don’t fully appreciate them?

I’ve showed everyone what was needed to be done.

If you’re too busy or too lazy to print out a piece of paper, fill it out and find supporting documentation---shame on you.

I’m done enabling a group of grown ups.

I know it’s not all about me. I simply dug down deeper than most are willing to do and found the answers we needed for our multiples situations.

It’s not like I’m curing cancer.

But it appears that in my absence, things have been handled in a less than efficient manner.

Your condo is your home, you have to treat the association like a business.

Or at the very least insure that the city doesn’t come snooping around.

Make no mistake ladies and gentlemen, we have completely stepped in it---the proverbial shit is getting ready to hit the fan.

My concern is that when we get these violations repaired that our cash strapped city will find new ones.

If the city is trying to collect on Bears season ticket holders PSL's, anything's possible.

I predict that this is not gonna turn out well.

Fractured Fairy Tale

There once was a lady who lived with her son on the south side of Chicago.

Unfortunately and unbeknownst to them, they lived in an apartment that had lead paint.

The exposure to the poison left the little boy with elevated lead levels in his blood.

So the lady left the building and moved to another place.

I can only assume to raise her child in the safest environment she could find and afford.

Unfortunately for her, the next place at 6959 South Paxton was no better than the first.

Or so the lawsuit allegeds (2008-L-005961).

Quadria Thomas and her son Danais Thomas are not only going after Merrill Square Cooperative and Quality Management Services---the first location; but also Carlton Knight and fellow defendants Walter Thomas and Theresa Thomas owners and/or property managers of the Paxton address.

Mr. Knight, Mr. & Ms. Thomas were the owners of the building where Ms. Thomas and her son “lawfully lived in and/or frequently visited an apartment in the said premises.”

I wish them luck.

I don’t think the esteemed lawyers of Conway & Conway know who they’re dealing with.

Even if they can prove that:

“…The said lead based paint to peel, flake, powder and otherwise deteriorate to the point where it could be and was ingested by the minor plaintiff;”
And…

“Caused other materials containing lead to be and remain on said premises and the apartment occupied by the plaintiffs, thereby creating a dangerous condition;”

And…

“Failed to warn the plaintiff’s parents and/or grandparents of the danger posed by the presence of lead on the said premises and/or apartment, though they knew that minor children were living on the premises.”

I’m mystified on how they’re going to get any type of financial relief.

I strongly suspect that legal shenanigans and delays will frustrate the plaintiffs and their lawyers.

And since a delayed payday is never on a lawyer’s agenda (or at least any lawyer I know), it’s within the realm of possibility that the plaintiffs may be dropped by their legal representative(s).

Leaving them up the creek without a paddle.

But when you think about it, would you really blame the lawyers?

You have a case constantly delayed with little if any chance of finding the pot of gold at the end of the rainbow what would you do?

But I hope against hope that’s not gonna happen.

Because if anyone needs to fight out a lawsuit, it needs to be on behalf of a little boy who’s very sick and was injured through no fault of his own.

I’m hoping for the best but expecting the worst.

Coming and Going

Good things come to those who wait.

Or at least that’s how the old saying goes.

The latest in Carlton Knight legal news is a doozy.

When I last wrote about him, Inland Bank and Trust’s lawsuit to get their million dollars was evolving into a page turner.

Well I’m proud to report its officially crack-a-lackin’---simply delightful reading material.

Let me break it down for y’all:

Inland Bank filed two separate cases against Mr. Knight regarding the Dixie Highway property in Harvey. The first was for a complaint to foreclose (CH07-10840) and the second was for a complaint for a confession of judgment.

A confession of judgment is when a defendant confesses to the accuracy of the plaintiff’s complaint or signs a “cognovit actionem, a written confession made out earlier by the defendant.”

“The cognovit note says in writing that the debtor owes a particular sum and has voluntarily submitted himself or herself to the authority of the court. If the debtor later fell into arrears, the creditor could obtain a judgment against the debtor without even bothering to notify the debtor of the proceedings.”
Explanation courtesy of Answers.com

Carlton’s lawyers in turn filed a motion (07-L-051164) to consolidate both of the cases while hoping to vacate the confession of judgment and/or “stay any further enforcement and allow the court hearing the mortgage foreclosure case to determine the alleged issue regarding the legality of the note.”

In short, if the cases get consolidated and there are grounds for dismissal on either point, the whole thing goes away.

That is the pimpiest of pimp legal moves I have ever seen.

At one point I questioned the prowess of one of Carlton’s legal team but I do have to say that these new kids (or at least new to me) from Cook, Revak & Associates are good.

Sharp cookies, indeed.

Inland fired back by stating:

“Mortgagee has several remedies (personal judgment, foreclosure, or recover possession of the property) that may be pursued to enforce payment. These remedies are concurrent or successive, as the mortgagee deems appropriate. When a mortgagee chooses to pursue remedies concurrently, they must be maintained separately.”

“The plaintiff may choose its remedy-or remedies-as it deems necessary and may pursue multiple remedies concurrently. It is clear that the proceedings must be tried separately. Therefore the plaintiff was proper in bringing both a mortgage foreclosure proceeding and the confession of judgment proceeding and the court should not consolidate the cases.”

Boo-ya, baby!

Apparently Inland isn’t taking the possible loss of over a million dollars lightly.

And I Thought I Was Pissed…

Every time I turn around I continue to get love from the blogosphere.

This time it comes from a similarly themed blog named bewarethebuilder.blogspot.com.

Oooh whee----Mr. Thomas Doyle is one angry condo purchaser. He’s one pissed off brother.

And he’s my new idol.

Not only is he fighting the good fight against his developer, but his developer Bryton Development LLC and it’s principal Kevin Bryar is suing him for defamation.

Defamation----that gets me kinda hot.

Now I’ve been through Mr. Doyle’s blog and I see a great many similarities in our experiences and I feel for him

Beating your head against the wall when it comes to this condo thing ain’t no joke.

Questionable construction quality and apathetic neighbors will drive you to drink.

You went ahead and took the plunge and took part in the American Dream and threw down a chunk of money to purchase your own home.

I was shitty when I didn’t get my full condo value for my paltry $125,000.

So I get that Mr. Doyle, also know as Truth In Advertising, is beyond incensed where his $390,000 is concerned.

Personally speaking, I’d launch a full scale war if that type of cheddar was involved.

So I say to Mr. Doyle and those of you who may follow in our steps, call it like you see it----but with caution.

Documentation, documentation, documentation.

Let me make myself abundantly clear----make sure you can document your claims.

Oh yeah, no matter how tempted you are to call the people you write about names and offer your opinion, resist.

Well, mostly. Sometimes you have to slip in a "shifty" here and a "scumbag" there to make your point.

Yeah, I name my developer and write about Mt. Carmel but majority of my posts are based in fact and can be verified by court documents or pictures.

My posts about random neighbors and the Jenkins Boys notwithstanding.

Note: Woody + Cell phone camera = trouble. I’m a picture snappin’ broad. Don’t do anything dirty, I will put your shit on blast.

Anyhoo…

For those of you who have been reading from the beginning you’ll remember that at first I didn’t name names---it took quite a while before Mr. Knight’s name was mentioned. I didn’t even refer to Mt. Carmel by name until earlier this year.

My intent in starting my blog was two fold---As a form of therapy and to inform others of some of the pitfalls on condo home ownership.

Everything else just kinda fell into place.

But as you all know egregious acts call for egregious actions. Hence names were named.

But through it all I adhered to my number one rule---be able to prove it through documentation.

Ladies and gentlemen, avail yourself of secrets hiding in plain sight. The freedom of information act was made to uncover potential deception.

Or at the very least be able to prove a pattern of behaviors that will lend credibility to any future acqusations you may make.

Ladies and gentlemen those government links on the left side aren’t there because I needed space filler.

Hell, I think that the kids at the Clerk of the Circuit Court’s office almost know me by name.

I find most if not all of my documentation right there.

You’d be surprised what you can find in legal proceedings in the Cook county court system.

Actually, you’d be surprised at what you can find when you start leafing through bankruptcy filings at the federal building.

But I’m sure you get the point.

It’s all right in front of you. Dig through, make copies and factually post your findings. Throw in your voice and you have a blog.

Now I’m not sure how this brouhaha is gonna turn out for Mr. Doyle.

But I would think that if he can properly document past behaviors and the current situation, he may stand a chance of defeating this lawsuit.

What do I know, I’m not a lawyer (even though I know an ass load of them).

This has all of the makings of a possible 1st amendment test case.

Time will tell if I’m right.

But I’ll tell you this; I’m running down to the clerk’s office tomorrow to get the 411. I’ll be the one at the copy machine.

It's Not Just Me

A few weeks ago one of my neighbors texted me near the end of my waitressing shift.

Since it was late, I was rather taken aback that I received a message that didn’t involve a dire emergency.

I pulled up the message, it read:
“Carlton was on Ch 7 hiding face coming out of court! Funny!”

I peed on myself a little ‘cause I got excited.

Hiding? Coming out of court? WTF is going on?

Despite my aching feet and crabby disposition, I rushed home in enough time to catch the rebroadcast of the Channel 7 news.

And just as I locked the door and turned on the TV what story should appear but the big splashy corruption investigation probe named Operation Crooked Code.

This time I about popped a boner.

As I watched the news report, a few of the indicted individuals were named but a complete list wasn’t made available.

That was a head scratcher.

I didn’t want to shout the joyous news from the rooftops until I saw my developer’s name in a federal indictment.

In short I needed to make sure that the T’s were crossed and the I’s were dotted.
The more I looked, I just couldn’t find any evidence that Carlton had been rounded up in the sting.

No peeing. No boner.

I’m glad I listened to my inner voice.

It turned out that the person who was covering his face coming out of the Dirksen Federal building was not Mr. Knight.

When I broke the news to my neighbor she was deeply disappointed.

And when I say deeply disappointed I mean buzz kill disappointed.

As much as I’ve chronicled Mr. Knight’s dealings with our association, I’m simply the smoke---the rest of my neighbors are the fire.

There's more than one owner who would like to see him get his comeuppance.

I’m just the one who happens to write about it.

While he wasn’t indicted, the city did file two new civil lawsuits against him. I also have to find out what’s going on with the Dixie Highway foolishness in Harvey.

Unfortunately my 12 part time jobs mean I don’t have the same amount of time to go sleuthing like I used to but I’ll eek out some time next week to go to the Clerk of the Circuit Court’s office.

Because as you should know by now, the saga is never ending.

Developing...

Makin' It Rain

I realized that it’s been awhile since I’ve reported on the antics of my favorite developer, Carlton Knight.

Last September, I wrote a post about a building that’s being converted by Mr. Knight needed major corrective work, despite the fact it was currently on the market.

According to DCAP an application was submitted to replace an existing porch.

I think any rational person can agree that it was a step in the right direction.

But that little voice inside my head told me there had to be more to this story. So I took a little trip down the Clerk of the Circuit Court’s office to dig up any possible paperwork.

Let me tell you folks, that was the best $1.75 I ever spent on a bus ride. The court papers did not disappoint.

So I don’t bore you I’ll cite a few samplings from the 27 page filing:


“Defendants Carlton Knight and the 1512-1514 E. Marquette LLC (‘The LLC’) are the developers of the subject property.”

“Beginning on or about January 2006, Defendants Carlton Knight and 1512-1514 E. Marquette converted the 6 unit apartment building that is the subject property to condominiums. That conversion required extensive renovations.”

“Defendants Carlton Knight, the Trust, and the LLC financed the renovations with a construction loan valued at $1,202,000, which included approximately $600,000 for the acquisition of the property.”

“Defendant Carlton Knight applied for several permits for the property. Defendant Carlton Knight failed to secure a certificate of occupancy for the property.”


The best part comes in the following eight counts the city alleges against Mr. Knight:

1. Failure to obtain a Certificate of Occupancy.
2. 56 separate building code violations.
3. Fines aren’t enough motivation to correct these issues, the city wants to building put into a receivership.
4. Making false statements of material fact.
5. Failure to obtain a general contractor’s license.
6. Failure to obtain a residential real estate developer’s license.
7. Failure to obtain a business license as a general contractor.
8. Failure to obtain a business license as a residential real estate developer.

My particular favorite is in count 4 (false statements of material fact) the city alleges:

“On August 18th, 2006, Carlton Knight applied for a permit for work being done on the subject property with the Department of Construction and Permits.”

“The application stated that the project was valued at under $10,000. The true value of the project was over $400,000.”

“Carlton Knight failed to disclose the true costs of work undertaken to rehabilitate the property when he falsified the amount of the rehabilitation project, and as a result violated 1-21-010 (2006).”

“Carlton Knight has violated and continues to violate section 1-21-010 of the general provisions of the municipal code by his continued failure to disclose the true costs of the work undertaken as required by DCAP and his knowingly falsifying his original application for a permit.”

I know each and every one of your are shocked by all of these allegations.

And just so you don’t die of curiosity, a few of the 56 separate building code violations range from the condition of the back porch, to inadequate lighting at an exterior entrance to the basement.

I cant imagine why the city would have a problem with various electrical code issues and failure to arrange mechanical ventilation or warm air heating system final inspection when the work was completed---do you?

I have to give the Department of Buildings and the Coporation Counsel mad props as they just seemed to finally inspect and document everything I’ve been writing about for the past two and a half years.

Only time will tell if the repairs are made or if Mr. Knight squeaks through another loophole.

Methinks the city just “made it rain” all over shady bootleg developers.

'Bout time.

Legally Speaking

Boy oh boy do I get e-mails and comments.

While I read all of them, I rarely respond to individual requests or queries via the blog.

And by rarely I do really mean rarely.

But today is the day I diverge from standard operating procedure.

Why?

‘Cause if I get one more e-mail inquiring about reasonable and competent legal services, I’m gonna scream.

So kind readers, let me introduce you to John Elias, esq. lawyer extraordinaire.

John has represented me in two real estate transactions, is the lawyer for our condo association and is very experienced in the breath of condominium law in the state of Illinois.

And yes, he’s a personal friend.

Despite the fact I’ve know him for nearly ten years, I can honestly say this kid’s top drawer. Not only is he good but he also has a high work ethic.

Plus any lawyer who stayed with us during the foreclosures, liens and learning how to run our home as a business deserves a medal.

Child please.

So look to the left to find a link to his website.

If you tell him I referred you, your association will receive a free hour consultation.

Yes a free hour consultation----for your association, not you. So don’t go in there with a personal ax to grind. Remember, your unit is your home but the association is a business.

It wouldn’t hurt if you adhered to the following tips prior to making an appointment:

Make sure all of the members of your association board can be present

Have a copy of your declarations and bylaws at the meeting.

There is never a thing as too much paperwork. Executed contracts, turnover documentation and dates are extremely helpful.

If you feel this topic needs to be addressed, disclosure of your financial situation.

Prepare all of your questions and concerns prior to the meeting.

You’d be surprised at how quickly an hour can pass when you’re with a lawyer.

And no, I don’t know his hourly rate. He doesn’t ask me how much money I make (hint: That would be zero as I’m unemployed) and I don’t ask him how he runs his business.

I’m just saving you the trouble of asking.

But as with anything, please do your due diligence. Check (or ask) him about his education and credentials, how long he’s been practicing real estate law and any other thing that pops into your head.

Just because I’m giving him the thumbs up doesn’t mean you should follow me blindly.

‘Cause frankly speaking----isn’t that what got you all in your predicament in the first place?

It’s The Fraud, Stupid

Since it’s an election year, I have a question for those who purport change.

When is our government going to get out of the business of subsidizing the hucksters that sap money from condo associations?

How?

It’s only a theory but one that bears repeating.

I don’t think it’s too long of a stretch imagining a person that would commit mortgage fraud would also attempt to defraud the government via a subsidized housing program.

Hell, let’s even take the mortgage fraud out of it since the many ways to defraud lenders and devastate neighborhoods has been talked to death.

Let’s just take this theory on it’s own merits.

Assume you have a landlord who owns a unit in a condominium association who applies for a subsidized housing program.

His or her unit passes the initial inspection, they secure a tenant and the payments from the government commence.

From the landlord’s point of view, everything is humming along nicely.

Now let’s throw a few “what if’s” in the mix.

What if the landlord ceases to pay his or her mortgage?

What if the landlord ceases to pay his or her monthly association assessments?

Now the playing field changes.

You would think that a vigilant board would be able to find out if a unit is subsidized or to notify the proper program officials that such shenanigans are taking place.

If you were a betting person, you’d be wrong.

Per current subsidized housing program procedures, unless you’re the client or the landlord, no information can be released.

And I suppose I understand the reasons for that rule.

The world is not a kind place. Let’s face it, there are those out there who would actively discriminate against clients of the program.

Frankly speaking, they’d be dumb asses to court disaster. Federal housing discrimination lawsuits are a bitch.

Nonetheless for a smart fraudster, that lack of communication----or gaping hole if you will---is a license to print money

You see my friends if that cagey trickster isn’t paying his or assessments but is still getting money from the government, how are you going to stop them?

Any attempts to reach out to the bureaucracy that is subsidized housing usually results with being talked to in very clipped, hurried tones.

You’re all but hung up on.

And I should know, I tried to tackle that maze myself.

As a result, the tricksters and fraudsters are potentially---yes I said potentially since I have no proof---getting away with bags of money on the taxpayer’s dime.

It boggles the mind that an individual can commit fraud, default on a mortgage, endanger a person’s primary residence, financially devastate a condo association AND drive down a neighborhood’s property value just like that (*finger snap*)

In a sense if fraud is being committed, one property could be yielding up to two revenue streams. One from the illegal (and inflated) proceeds and another from the subsidized housing revenues.

Now if the suspect landlord is engaging in these activities the mortgage company loses, the condo associations loses, subsidized housing dollars are being thrown out the window and more importantly the tenant loses.

It’s a big fat bag of ass for everybody.

So in this hotly contested election year I’d ask the candidates how they’d protect the interests of the tenants, condo associations and the public piggybank from assholes who are hell bent on taking all of us for a ride.

That’s the reform I’m interested in.

Set, Match...

It took almost two years but it is finally over.

The third party judgment against the association has been vacated by the city. We are now officially not holding the bag for Carlton Knight’s responsibilities.

Well at least for this one.

Like Babe Ruth Mr. Money Bags came through and delivered on his called shot---the issue was indeed cleared up before Christmas. Specifically December 21st.

Because Mr. Money Bags is all that and a bag of chips, a handwritten thank you note was promptly put in the post.

‘Cause I’m a classy broad like that.

Good Night & Good Luck

Justice is for those who can afford such luxuries.

Unfortunately while our association is in a much better position financially, we aren’t at the point where we can shell out a $7,500 retainer for a lawyer.

A lawyer who would of took the case on a contingency fee might I add.

Every lawyer or legal person I’ve spoken to has said we have an open and shut case. Slam dunk, no question.

But as I’m sure you all know because you’re up on things like that---a judgment isn’t worth the piece of paper it’s written on.

Yeah, it’s great to be able to attach it on to a credit report but we’re looking for the cash.

Cold, hard, put it in the bank account cash.

Anything less---lawsuit wise---is pointless.

I mean we just got bitch slapped by the bankruptcy trustee regarding the almost $7,000 judgment against Maurice Cousin.

While I personally like to mix it up when I know I’ve been wronged, this isn’t my call. It’s the association’s call and I can’t see those kids willing to extend more energy for the probability of a less than stellar result.

Being fair has nothing to do with justice.

Personally I don’t want to get all Bart Ross on this issue either.

I’m not trying to make light of the pain that psycho cause Judge Lefkow’s family but rather to underscore that sometime you need to know when to when to let it go.

No matter how right you may be or feel you may be.

When you make an issue your number one priority it can consume your very existence until there’s nothing left.

Carlton Knight isn’t worth my soul.

God knows, if he believes in such things, he’s going to have a hard enough time saving his own.

As I’ve said before karma is a motherfucker.

Now don’t think I won’t be persuaded to get back in the fight if a cool $10K or excellent free legal representation drops out of the sky (wouldn’t we make a great pro bono case, hint, hint) but the chances of that are remote.

It’s not that the dog isn’t hunting anymore but rather needed to take a rest after all of that hunting.

I’m sure the scent will get picked up again in the near future.