September 12, 2008 – A connection is emerging between Gary Kimmel, who pleaded guilty on May 29 to federal charges of money laundering, and officers of Marina Towers Condominium Association involving the sale of Kimmel’s condominium units to raise money for restitution.

In 2006, to help sell six condo units, Kimmel employed as his real estate agent MTCA president Donna Leonard. Her husband, John Leonard, was Kimmel’s attorney at the closings, according to the United States Attorney’s Office.

One of the units was sold to MTCA secretary Ellen Chessick and her husband, Kenneth.

The hiring of Donna Leonard would have been approved by Kimmel, his attorney, lawyers for the U.S. government, and the court, according to Randall Samborn, Public Information Officer for the United States Attorney’s Office.

A court order directs the United States Marshals Service to “employ a real estate broker experienced and knowledgeable in the sale of similar properties, with multiple listing capabilities, who shall be paid a commission from the proceeds of the sales as negotiated by the U.S. Marshals Service.”

According to the Illinois Department of Professional Regulation, Donna Leonard is a licensed real estate broker. She also works for the Illinois Secretary of State, in the Inspector General’s Office.

The sale amount of each unit would have been included in a motion that was subsequently approved by U.S. District Court Judge Blanche M. Manning.

Sentencing is currently scheduled for September 25 but Kimmel’s attorney, Joseph Lopez, says there will be a continuance while he seeks a sentence that is below minimum guidelines.

Kimmel voluntarily sold condo units

Proceeds from the sale of the condo units were offset by mortgages, taxes, homeowners association fees, and U.S. Marshals Service expenses. From the sale of unit 3905, Kimmel was allowed to pay $50,000 to Lopez.

The remaining funds were held in escrow by the U.S. Marshals Service, pending further court order.

Samborn says allowing Kimmel to voluntarily sell the units is “easier and more efficient” than auctioning the property, like in a tax foreclosure sale, which would have required waiting until after sentencing.

“What happened here was Kimmel sold these units while he still owned them in an effort to get the value out of them so the government could recoup the money sooner,” says Samborn, “not have to become the landlord, or title owner of the property and go through more cumbersome, slower procedures to sell the units.”

He says Kimmel did not contest the forfeiture of the six condo units. “He apparently worked with a real estate agent who as I understand it…was somebody he knew, somebody…maybe who lives in the building or owns units there.”

Samborn did not know how the properties were sold, whether they were put on the market or sold to buyers the agent happened to know.

Kimmel needs to raise $405,000

On September 3, the U.S. Attorney filed a motion seeking from U.S. District Court a preliminary order of forfeiture. They want from Kimmel $405,000, payable from the sale of six condominium units at Marina City, a 2001 Plymouth Prowler, personal computers, and collectible coins.

If Kimmel comes up short, Fitzgerald says he will seek the forfeiture of three condo units that Kimmel still owns. (Left) U.S. Attorney Patrick Fitzgerald

So far, the government has raised $315,968.18 from the sale of the six units in 2006, although $80,884 is still in escrow. An additional $11,164 came from other sources.

Data obtained from U.S. District Court documents, Cook County Assessor’s Office, Cook County Treasurer’s Office, and Cook County Recorder of Deeds.

Three units are currently owned by Raymond A. Andrew, a Chicago patent attorney. John A. Frangias is also an attorney. Ken Chessick is an attorney, as well. Glen Ohlerking owns two units at Marina City but resides on South Richmond Street in southwest Chicago.

The 2001 Plymouth is currently in the custody of the U.S. Marshals Service. Other vehicles were seized but they have since been returned to their respective lien holders.

The government must publish advance notice of the forfeiture order, in case anyone with financial interest in the property wants to challenge the order in court. Following the disposition of any third party interests, the government will have to file another motion seeking a final order of forfeiture.

Kimmel sentencing to be delayed

Meanwhile, Kimmel’s attorney says there will be a continuance in the case as he tries to get a lesser sentence for the Marina City resident.

Joseph Lopez says he will file a motion for “downward departure,” which aims for a sentence that is below minimum guidelines. It is often used in cases in which the defendant has provided substantial assistance in an investigation or prosecution of someone else.

Court documents have described Kimmel as cooperative with the investigation. It was Kimmel himself who made incriminating statements to investigators – as his original plan was to plead guilty to avoid jail time. Kimmel’s attorneys say FBI agents made “implied promises” that the more he told them, the less likely he would receive a prison sentence.

Kimmel is accused of accepting about $372,000 from alleged pimps to pay for luxury vehicles for use by a prostitution ring. According to the complaint against him, he also supplied dental work, airline tickets, bail money, and helped pay for advertising for the prostitution business.

Preliminary sentencing guidelines call for 37 to 46 months in prison, followed by three years of supervised release.

Related story:

 Kimmel pleads guilty (May 29, 2008)