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City won't take back suspect properties sold by Land Bank

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The city of Indianapolis won't try to take back properties that were sold by its Indy Land Bank to suspect not-for-profits or to Naptown Housing Group LLC, in which former land bank director Reggie Walton is alleged to be a silent partner.

An internal review found that in 2012 and 2013, the land bank sold 20 properties to the Indiana Minority AIDS Coalition and another 20 to New Day Residential Development, each of which saw their executives, David Johnson and Randall Sargent, indicted along with Walton on May 21. Department of Metropolitan Development employee John Hawkins and Aaron Reed of Naptown Housing also face federal charges.

U.S. Attorney Joe Hogsett alleges that Walton accepted bribes and kickbacks for funneling properties to the not-for-profits and to Reed. The city's review found that Naptown Housing was in the chain of title on eight properties sold by the land bank in 2012. A report on the probe released publicly Friday morning didn't identify the properties but said the information would be provided to federal authorities.

"Throughout the internal review process, we have been contacted by citizens who now live in homes they have acquired and rehabilitated through the land banking process," the report states. "We do not contemplate taking any action to recover title to real estate from an innocent purchaser for value, regardless of alleged fraudulent activity by a predecessor or an agent of a predecessor in the chain of title."

Thirteen of the properties the AIDS coalition acquired over the last year were sold to victims of convicted real estate fraudster Sheila Amos, the Department of Metropolitan Development review found. At least one of those victims, Joseph Satterfield, has said he was in the process of buying the home he occupied from the AIDS coalition when Johnson was indicted. City officials said they couldn't intervene in that transaction.

Mayor Greg Ballard's internal review dates back to October, when events mentioned in the federal indictment are alleged to have begun.

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  • Electronic Documentation...
    If any city officials need more documentation on this situation, just contact me.
  • Truth Hurst...
    Truth, man whatever. I know what I'm reading in the paperwork filled (this sale) with the city is proof of wrongdoing. NONE of this information is from me. No accusations, just hard facts. My info is from the actual official public paperwork. The emails are time/date stamped from Google and Yahoo servers——NSA also has this info ;-) What I'm posting is 100% true, so I have now worries posting this information. The people are putting down mulch and flowers at this land bank house right now?!? They are blatantly disregarding the stop order. Me posting is not having a bad effect, quite the opposite. Sorry if my comments are bothering you, but I'll keep posting, you can just ignore my comments. Indy Land Bank Details here: - http://goo.gl/htLES -
  • Laughable
    Mr. Moore, your complete ignorance of the situation is laughable. You obviously have no idea what you are talking about. You should really be careful about making accusations when you don't have all the facts. You are a joke and your constant comments on these articles is having the opposite effect that you desire.
    • Go Back to the Beginning...
      The city should take back suspect properties from those who got the properties unfairly. Innocent buyers who fixed up the homes should keep them. But the city REALLY needs to check. Some of these people were part of this...that's how they go the homes in the first place. Example... The city put a stop order on one Indy land bank house. But the criminals who bought it are STILL working on it. I have ALL the details (video) on this webpage (near the bottom). Indy Land Bank Details here: - http://goo.gl/htLES - I thought a "Stop Order" means for the work to stop. Am I missing something? The city needs to go back to when Carrie was running the Indy land bank. This (theft) started well before October, this was going on two+ years ago.

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      1. PJ - Mall operators like Simon, and most developers/ land owners, establish individual legal entities for each property to avoid having a problem location sink the ship, or simply structure the note to exclude anything but the property acting as collateral. Usually both. The big banks that lend are big boys that know the risks and aren't mad at Simon for forking over the deed and walking away.

      2. Do any of the East side residence think that Macy, JC Penny's and the other national tenants would have letft the mall if they were making money?? I have read several post about how Simon neglected the property but it sounds like the Eastsiders stopped shopping at the mall even when it was full with all of the national retailers that you want to come back to the mall. I used to work at the Dick's at Washington Square and I know for a fact it's the worst performing Dick's in the Indianapolis market. You better start shopping there before it closes also.

      3. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

      4. If you only knew....

      5. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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