Posted on May 23 2019
Updated 5/28/2019 3:55PM with Arrest, Bail and Joint Letter re Discovery, See bottom of entry. Turns out Stephen Calk sat in a cell for hours. Arrest occurred at 8:30AM on May 23, 2019, his initial appearance & arrangement occurred at. 2:35PM on the same day.
Updated 5/23/2019 12:49PM to include Manafort’s EDVA Trial Brief, See bottom of this entry
Updated 5/23/2019 2:45PM with Case No & Unseal Order, See bottom of entry.
I have been waiting ever so patiently. for the Justice Department to unseal your Indictment. And I mean waiting a. long. time.
This song and entry is dedicated to Stephen Calk ...it’s time and lady justice awaits you.
In the late Spring of 2017 I spent a decent amount of time creating, in painstaking detail Manafort’s various properties and accompanying mortgages. My @Spicetlies and @AltSpicerlies accounts were zapped. Which is fine because under my @SpicyFiles I quickly reassembled said research. In my line of work if you can’t prove your theory then it isn’t worth talking about.
See April 2019 entry where I linked to the various mortgages & congressional letters, May 2018 entry. I mean I even asked as recent as March 2019 why Calk hasn’t been indicted, See all previous entries here.
And just when you thought all Hope was lost...the SDNY AUSA answered our prayers, okay mainly mine but I’m willing to share. If you haven’t figured out by now, I am relentless. When I know my data & research is solid and backed up with receipts then I’m comfortable making, what might appear to be a crazy assertion, but I know I have the facts & documents to make such pronouncements. Frankly it’s not like I wasn’t looking (particularity closely) at my research and asking out loud: WHY. ON EARTH. IS. STEPHEN CALK. NOT INDICTED?
I also vaguely remember in the late Winter of 2017 that Stephen Calked blocked me on Twitter. At the time I “@“ him the following questions; 1) could you please explain why Manafort’s mortgages represent nearly 35% of your bank’s loan portfolio, and 2) have you hired a decent attorney to cover your flank in the CitiMortgage case(s) and are you really willing to risk a lifetime FDIC ban?
He instantly blocked me, which told me I was over the target and I decided to keep digging for receipts. And then I just waited. But apparently now it’s all breaking news.
CALK, the Bank, and the Borrower
the bank is Federal Savings Bank and the Borrower is Manafort. The “relative” is Calk’s younger brother and I would urge the AUSAs to look at this Bancorp Bankruptcy and the Citibank lawsuit, lots and lots of fraud
As the Indictment alleges:
STEPHEN M. CALK is the chairman and chief executive officer of the “Bank,” a federal savings association headquartered in Chicago, Illinois, with an office in New York, New York. The Bank is owned in its entirety by the “Holding Company,” a Chicago-based bank holding company, and CALK is the chairman, chief executive officer, and owner of approximately 67% of the Holding Company.
Again the Borrower is in fact Paul Manafort and I somewhat suspect the delays in Calk’s Indictment might be tied with Manafort’s Asset Forfeiture issued
The “Borrower” was, at all relevant times, a lobbyist and political consultant. Beginning in or about March 2016, the Borrower held a senior role with a presidential campaign (the “Presidential Campaign”), and from June 2016 through August 2016, he served as chairman of the Presidential Campaign. After the Borrower’s formal role with the Presidential Campaign concluded in or about August 2016, the Borrower continued to be informally involved in the campaign. Beginning in or about November 2016, when the candidate for whom the Borrower had been working was elected President of the United States, the Borrower provided informal input to the presidential transition team (the “Presidential Transition Team”)
The Corrupt Scheme
Its like the oldest corruption gambit, pay to play. You scratch my back, I’ll scratch yours, but first you’ll need to approve a multimillion dollar mortgages. Because my entire house of cards is about to crumble and I can’t launder any more dirty money...and then I’ll give you Trump’s DID & he will nominate you as his Army Secretary.
CALK understood that the Borrower urgently needed these loans in order to terminate or avoid foreclosure proceedings on multiple properties owned by the Borrower and the Borrower’s family. Further, CALK believed that the Borrower could use his influence with the Presidential Transition Team to assist CALK in obtaining a senior administration position.
Like I said it’s the classic Pay to Play:
Bank and Holding Company to extend $16 million in loans to the Borrower in exchange for the Borrower’s requested assistance in obtaining a high-level position in the presidential administration
If my memory serves me correct the loans Calk approved for Manafort made up just under 29% of the Bank’s entire loan/mortgage portfolio:
CALK was aware of significant red flags regarding the Borrower’s ability to repay the loans, such as his history of defaulting on prior loans. Moreover, given the size of the loans, the Borrower’s debt became the single largest lending relationship at the Bank
Remember that time I told you that was a lot of money for mortgages and that it was relatively easy to pull down said mortgages for Manafort’s Hamptons Mansion (See previous entry here, it includes Barrack loan to Manafort via SummerBreeze) and the FSB mortgages).
...just days after CALK and the rest of the Bank’s credit committee conditionally approved a proposed $9.5 million loan to the Borrower – the Borrower appointed CALK to a prestigious economic advisory committee affiliated with the campaign. And second, in or about late November and early December 2016 – after the presidential candidate had been elected president, after the Borrower’s first loan from the Bank had been issued, and while a second set of loans worth more than $6 million sought by the Borrower was pending approval by the Bank – the Borrower used his influence with the Presidential Transition Team to assist Calk,
If Calk is found guilty, he faces a maximum sentence of 30 years...Attachment(s): Download U.S. v. Stephen Calk Indictment
If I’m going to be honest there’s nothing relatively new in Calk’s Indictment, it is exactly what I said it would be in the Fall of 2017. Because it also includes Manafort’s (now) ex Son in Law and it exactly what I have previously detailed in my various twitter threads and now in this blog.
The Triple Lindy of Trump Corruption
Hey remember that time Obama or Bush’s Economic Council Members ended up being named in a Federal Indictment? Yea I don’t remember that either but talk about historic. Good Job Trumpy, your current Treasury and Commerce Secretaries are in fact referenced in the Calk Indictment. Also how weird that Tom Barrack (who previously bailed Manafort out of Financial Ruin) is also referenced in today’s Calk Indictment.
Also not to beat a dead horse but a lot of this was brought to light during the Manafort EDVA trial. I actually remember rhetorically asking: huh? That’s weird, why isn’t Calk on the Government witness list. Remember the SCO granted then Federal Savings Bank Loan Officer and Underwriter immunity. I can’t recall if it was limited use immunity or immunity more broadly but I remember looking at the witness list and the SCO disclosure that they granted immunity:
Should you be inclined you can read this previous entry, I pulled down Manafort’s Mortgages, the FSB letter to Congress, the DOD letter to Congress and Congressional letters to Calk & the Trump Administration.
Again I’m not even remotely surprised by Stephen Calk’s Indictment, I’m just glad he was finally indicted because I was starting to lose hope. See DOJ Indictment. And lastly it would kind of be nice if Twitter would kindly reinstate my Twitter Account in the past 18 hours two Indictments prove that my research on Avenatti and Calk was fairly accurate...so until then I guess I’ll be relegated to this blog.
Update #1 5/22/2019 at 12:52pm
As previously mentioned, a vast majority of the facts detailed in Calk’s Indictment appear to be nearly identical to the Manafort EDVA trial. This Open Source link will take you to Manafort’s trial brief. Remember that the evidence prosecutors submitted was “material” meaning it was a causation for The Federal Savings Bank to extend multiple loans to Manafort. Calk actually intervened and overrode the EVP of the Bank because of the derogatory financial information on Manafort’s application. Coupled with the
Admittedly the only time in the Manafort Trial that I laughed was the “hey so how do you convert a word document to pdf and vice versa” yes that really did happen and the prosecutors had the evidence to back that up. Also this trial brief actually explains one of the longer sidebars in Manafort’s Trial. I have to double check and see if the sidebar transcript has been unsealed because I seem to recall the Government via the EDVA AUSA & SCO opposed unsealing the sidebar transcript “because of an ongoing criminal investigation”...although my memory might be faulty. But I do remember tweeting some to the effect:” that ongoing criminal investigation better be Stephen Calk”
Moreover (and yes I know some of you have really strung feelings about Judge Ellis) but I was intellectually honest enough to admit that Judge Ellis’ “materiality” interjection wasn’t appropriate. My recollection is Judge Ellis issued a separate Jury Instruction surrounding Manafort and Calk but specifically Calk’s action to overrule the underwriter who urged Calk to deny Manafort’s loan. See footnote on page 5.
The Government then addressed the four factor test of “materiality” regarding Calk’s decision. One thing to keep in mind is, Manafort’s (albeit creative) Defense was his falsehoods were not material to Stephen Calk approving Manafort’s Loans.
In the end Judge Ellis agreed with the Government but one lingering question for me has always been did Manafort attempt to tamper with a witness, that being Stephen Calk. Given it’s pretty clear that Stephen Calk was a target so it makes perfect sense why the SCO opted to put other TFSB employees on the stand.
In closing and I can’t emphasize this enough, I would urge the House Financial Services Chairwoman Waters to pull down the following cases involving Stephen Calk’s previous bank which went Bankrupt. But Calk also hide the Bancorp assists and rolled them into The Federal Savings Bank, at least that’s what 6+ weekends of my research showed.
CitiMortgage, Inc. v. Chicago Bancorp, Inc. (4:12-cv-00246) EDMO
CitiMortgage, Inc. v. Chicago Bancorp, Inc. (4:14-cv-01278) EDMO
CitiMortgage, Inc. v. Chicago Bancorp, Inc. (1:16-cv-03926), NDIL
Specifically pull down the Plaintiff’s filing, I started losing count of how many fraudulent mortgages Stephen Calk’s Chicago BanCorp sold to Citi...it was several dozens. I would also expect the FDIC to issue a lifetime ban for Calk.
Update #2, 5/23/2019 at 2:50PM EST
Open Source Link to Criminal Case No: United States v. Calk (1:19-cr-00366)
And this is why I pay attention to documents that are placed in the vault.
May 28, 2019 Update
That’s a significant bail set at $5 million. Condition(s) of release (paywall)
Calk was also ordered to hand over firearms.
No contact with any witnesses (of a list provided)
Can not transferring any funds outside of the US without prior approval by PTS.
With respect to discovery, in mine line of work, seeing the word voluminous in the context of discovery, it is never a good thing, at all. But then again it’s not that unexpected, generally speaking mortgages and loans require a lot of documents. Open Source link to the letter (document no 10) found here.
The parties propose that discovery, which is voluminous, be produced by the Government on a rolling basis beginning promptly and shall be completed by August 26, 2019, i.e., 90 days from today.
While you're here, throw us a bone.
Mad Dog is thrilled to have Spicy in our PAC(k). We are proud to provide a space for her tireless, hard hitting, in-depth investigations. But we can’t do it without you.
Our numbers are growing. Our voices are being heard. Our campaigns are making a difference. Help us, and Spicy, continue to fight the good fight. Consider a donation to help support the work of Mad Dog PAC today.