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The Chicago-based BMO Harris Bank has been sued by the trustee in the Tom Petters bankruptcy case asking for unspecified damages.  The trustee is accusing the bank in aiding Petters in by ignoring the massive amounts of funds flowing in and out of the bank account Petters used to launder money for is Ponzi scheme. A representative for the bank denies the allegations and states the bank will fight the lawsuit.  BMO Harris is also involved in a lawsuit by a trustee in Florida in regard to a … [Read more...]

This week the Chicago City Council approved the Mayor’s 2013 budget for the city by a vote of 46 to 3.  According the news reports, the $8.3 billion budget balances the city’s finances without adding new taxes, fines or fees.  It also gets rid of the employee head tax by the end of 2013. The city budget did have a $369 million projected deficit; however, that was dealt with through spending reforms, spending cuts and additional savings and revenues.  For more details on Mayor Emanuel’s 2013 … [Read more...]

Republicans are still arguing that lower tax rates will generate more revenues according to the “dynamic scoring” theory.  They are still standing steadfast that they will not support any deal that includes raising taxes for the wealthy.  On the other hand, President Obama is worried that those revenues will not materialize thereby forcing cuts in programs that are vital to the middle-class.  Obama is seeking over $1 trillion in revenue from increased tax rates for the wealthiest … [Read more...]

The Allerton Hotel, an historic hotel on Michigan Avenue in downtown Chicago, had filed for bankruptcy in May 2011.  After battling its largest creditor for days this summer, the hotel has finally reached a settlement with the creditor thereby allowing its bankruptcy plan to be confirmed. Under the terms of the plan, Allerton must put the plan into effect by January 18 or the hotel will be auctioned.  As part of the plan, Allerton must pay a $5 million principal payment to its largest … [Read more...]

“We want to highlight this issue of gun violence and we also want to add to our resources to address it," Cook County Board President Toni Preckwinkle told reporters on Friday as the Board passed the gun tax by a vote of 9-7.  The proposed tax on bullets was withdrawn earlier last week. The tax is to help defray the health costs incurred by the county from gun shot wounds.  In addition to the gun tax, the board also approved a $1 per pack cigarette tax also to assist with the costs of public … [Read more...]

A new $793 million financing deal may be the ticket out of bankruptcy for Eastman Kodak Co.  The deal still must be approved by the bankruptcy court and is contingent upon Kodak receiving a minimum of $500 million for a patent portfolio that it has for sale. The financing will come in the form of new loans and dollar-for-dollar exchanges for existing debts under current notes.  Some lien holders have objected to Kodak continuing to have exclusive control of its bankruptcy process.  To read … [Read more...]

The village of Winfield has a small local police department that employs 19 people.  However, because of the costs the town has considered outsourcing police services.  Tuesday voters in Winfield were asked to approve a property tax increase to pay for the local police department.  More than a majority of voters said no to the tax hike; however, almost 88% of those same voters stated they wanted to keep the local police department. For more see, “Winfield Winfield voters say 'yes' to police, … [Read more...]

Even before the speeches were finished, the president and congress were back on opposite sides of the “fiscal cliff” that is looming at the end of the year.  Unless the parties can agree, $600 billion in tax increases and spending cuts will take place on January 1. One key disagreement is keeping tax cuts for individuals and couples that make more than a certain amount.  Republicans want tax cuts for all and Obama wants to cut out tax cuts for the wealthy. For more read, “Obama Faces … [Read more...]

A former Chicago resident filed false tax returns over five years to defraud the Internal Revenue Service.  By filing 645 false returns, he was able to get approximately $19 million in tax refunds. Andrew J. Watts, a Barbados national, used the social security numbers of deceased individuals to file the false tax returns.  After pleading guilty,Watts has been ordered to pay restitution and to serve over nine years in prison. The full story can be found at “He files bogus tax returns for … [Read more...]

Steve Chapman of the Chicago Tribune discusses tax reform and the politics behind it in his article “The tax reform mirage – New rage or old dodge?”  Whether it is the topic of a think tank or a political debate, everyone seems to believe that it will save the American economy. Everyone agrees that tax reform is necessary but no one agrees on how to reform the tax code.  Like the beautiful oasis that promises sustenance, Chapman argues tax reform is just a mirage instead of an oasis. For … [Read more...]