Will North Jersey prices be pulled up by NYC?

From the Star Ledger:

Manhattan homes are harder to buy. Hello, New Jersey?

For Manhattanites, the grass is greener on the Jersey side.

A recent survey by Miller Samuel shows it’s become more difficult to buy a nonluxury home – less than $3 million, and about 90 percent of the inventory in Manhattan – in the past few years. The study found the number of units available dropped by more than 36 percent year-over-year.

That’s why places like Hudson and Essex counties, which have easy access to Manhattan, have seen steady growth.

According to the July market report by Otteau Valuations Group, contract sales in Hudson County are up 21 percent year-to-date, and the largest growth sector – 9 percent – is in homes priced at between $1 million and $2.5 million.

In Essex County, sales are also up by 21 percent, and by 5 percent for homes worth more than $2.5 million.

At those prices, the owners can save enough money to pay landscapers to mow the greener grass.

This entry was posted in Economics, North Jersey Real Estate, NYC. Bookmark the permalink.

70 Responses to Will North Jersey prices be pulled up by NYC?

  1. grim says:

    From the Record:

    NJ still has more troubled mortgages than national average

    While the worst of the foreclosure crisis has passed nationwide, New Jersey homeowners continue to struggle, with one in six either late on their mortgage payments or in foreclosure, the Mortgage Bankers Association reported Thursday.

    The Garden State has a backlog of troubled loans that piled up as the state dealt with accusations that mortgage servicers were abusing borrowers’ rights. Mortgage industry representatives were accused of “robo-signing” documents – signing them by the thousands without verifying them. Foreclosure activity in New Jersey slowed dramatically for more than a year as the industry dealt with the fallout of those allegations, but has recently picked up after several legal settlements and court rulings.

    New Jersey is one of about two-dozen states where mortgages must go through the courts, which also slows the process. It’s been estimated that it takes more than 2½ years for a lender to foreclose on a home in New Jersey after a homeowner stops paying the mortgage.

    According to the mortgage bankers group, in the second quarter, about 10 percent of mortgage holders nationwide were either late on their payments or in foreclosure. But in New Jersey, about 16.3 percent of mortgage holders were in trouble. And New Jersey has the second-highest rate of properties in foreclosure, after Florida.

  2. grim says:

    From the WSJ:

    Home Prices Rise Steeply in West, Sunbelt

    Cities in the West and the Sunbelt, among the hardest hit during the real-estate downturn, continue to lead the nation’s housing recovery—posting double-digit gains in home prices that have outpaced even the most optimistic projections from a year ago.

    In the second quarter, median existing-home prices increased in 142 of the 163 metropolitan areas tracked by the National Association of Realtors, according to a survey released Thursday. Among the 10 cities with the fastest year-over-year price growth, nine were in California, Florida or Nevada—states that were hammered by the grinding real-estate bust that persisted from 2007 until last year.

    The fastest growth was the West, with 18.2% price growth, followed by the South (11.0%), the Midwest (7.9%) and the Northeast (6.9%).

    There was as an average of 5.1 months worth of existing home supply in the second quarter, down from 6.4 months in the second quarter a year ago.

  3. chicagofinance says:

    grim you cheated……FRIST

  4. grim says:

    From the NAR:

    New York-Northern New Jersey-Long Island, NY-NJ-PA – Up 4.5% YOY
    New York-Wayne-White Plains, NY-NJ – Up 5% YOY
    NY: Edison, NJ – Up 0.8% YOY
    NY: Nassau-Suffolk, NY – Up 5.5% YOY
    NY: Newark-Union, NJ-PA – Up 3.2% YOY
    Philadelphia-Camden-Wilmington, PA-NJ-DE-MD – Up 3.4% YOY
    Atlantic City, NJ – Up 3.6% YOY
    Allentown-Bethlehem-Easton, PA-NJ – Up 19.2%

  5. chicagofinance says:

    Would that be Staten, City and Long?

    JJ says:
    August 9, 2013 at 8:51 am
    Today is last day for a few weeks. Off to the islands.

  6. grim says:

    From the Record:

    Bergen workers got a 6.2% raise in fourth quarter

    Wages in Bergen County rose 6.2 percent in the fourth quarter of 2012 compared to the year ago quarter – to an average $1,272 a week – the federal Bureau of Labor Statistics reported Thursday.

    Bergen wages were boosted by outsized gains in finance and professional and business services, according to Martin Kohli, chief regional economist of the BLS. The county increase from the fourth quarter of 2011 to the fourth quarter of 2012 was the biggest rise in the state’s 15 largest counties. About 435,000 people work in Bergen County.

    But Passaic County’s 175,100 workers lost ground, as their wages dropped 2.1 percent from the fourth quarter of 2011 to the fourth quarter of 2012. The average weekly wage was $998.

    The biggest drop in Passaic County wages came in a category called “management of companies and enterprises,” which covers corporate headquarters. That sector also lost jobs over the year. The BLS wage report does not break out individual companies, so it is not clear where those wage and job losses took place.

  7. I see the sheep every day who leave NYC for “affordable” NJ. They will be trapped here the rest of their lives.

    Collapse is imminent. Prepare accordingly.

  8. Too bad the NYC refugees can never send Muffy or Liam to Ferris or Dickinson HS.

  9. Then again, Ferris was good enough for Bebo.

  10. Libtard in Union says:

    Captain Cheapo says:

    The British Airway Visa Credit Card Promo is back and it’s even better. They even wave the $95 first year annual fee.

    We leave for our first class trip to London and Paris on Friday. Cost? The taxes on the three free tickets. $34,000 in cc spending resulted in about $27,000 in first class travel (maybe more). Plus, we have points left over which can be used on American Airlines.

    For those with discipline about paying your credit cards off in full each month, there is and probably will never be a better deal. Especially if you just want the 204,000 miles which requires only $4,000 in credit card spending in two months. At 2 cents per mile, you are getting $4080 in airfare for $4,000 in credit card spending. Good luck finding an offer that yields you 100% back. Remember, you can open one for yourself and your spouse (if you managed to find one you fat bast@rd).

    Thank me from the Concorde Lounge.

  11. joyce says:

    And I’ll remind the reading and writing challenged among us that yes taxes matter but more important is govt spending (and FED printing)… and nobody benefits more from that than Finance (a.k.a. Wall Street).

    JJ says:
    August 9, 2013 at 8:51 am
    Today is last day for a few weeks. Off to the islands. I have to let other folks worry about the collapse of real estate.

    Joyce mostly likely does not even pay taxes like me and Micheal. I always find that amusing welfare folks making under 150K complain about tax dollars being spent. Meanwhile folks making over 150K rarely complain.

  12. joyce says:

    10
    Libtard,

    Do you have a link?

  13. JJ says:

    Beaches. Yes I actually own a beach house, and I am flying to a beach. That is how I roll.

    chicagofinance says:
    August 9, 2013 at 9:20 am

    Would that be Staten, City and Long?

    JJ says:
    August 9, 2013 at 8:51 am
    Today is last day for a few weeks. Off to the islands.

  14. joyce says:

    Libtard,
    (I’m sure you know) And you can use American Airlines domestically if you so choose.

  15. Fabius Maximus says:

    #10 Lib

    Looking to parlay the last offer into flights to Hawaii for early next year.

  16. Fast Eddie says:

    Meat Scrapple,

    Dickinson has been a prison since the mid 60s. Every worthy derelict I ever knew was a product of Dickinson. Growing up in Jersey City, you either went to Dickinson, Prep or Hudson Catholic. The kids that went to Prep and Hudson are still alive and still without a criminal record, for the most part. Ferris, Lincoln and Snyder has always been an adventure for as long as I can remember. I knew one white kid that went to Lincoln and I think he was 1 of 5 white kids in his graduating class.

  17. Libtard in Union says:

    Fab,

    According to Jonathon (the financial blogger I linked), if you drop the card and setup a new BA account, you can reapply for the promotion as soon as 6 to 12 months after. I dropped the cards the day after I obtained the miles in my BA account. Will close my BA account later this year (once I use up my leftover miles). I should be good to do it again by the Spring.

  18. chicagofinance says:

    Q: I have a client that attempted to wire $12,000 from one bank (i.e. HSBC) to another in NYC. Bank screwed it up and it is about 3 weeks later and bupkiss…….is there a place to complain?

  19. Libtard in Union says:

    Speaking of Chilltown, there was this Chinese Food take out place on Newark Avenue downtown that used to make me the best fish with broccoli ever. The owner eventually even added my dish to his take out menu. The restaurant was named Shun Lee Kitchen but became just another fried chicken joint shortly after I moved out. Well the story I want to share is pretty funny. One day, I was picking up my fish with broccoli. A hood walks into the shop and quickly flashes the owner a small handgun (Ruger maybe, definitely a 22) and asks the owner to empty the register. The hood put the gun back into his pocket to open a bag for the money. The owner calmly reaches under the register and pulls out a really old but huge and long barreled Colt 45 and points it Dirty Harry style right into the crotch of the perp. That dude ran so fast out the door it was one of the funniest things I ever saw. The whole altercation lasted about 10 seconds. The owner didn’t even call the cops. He just went on folding wontons.

    I just Google street viewed the old address and it looks like they are now back to selling Chinese food (and flame-broiled chicken). I’ll have to get back there some time to see if he’s still selling the fish dish.

    https://maps.google.com/maps?f=q&hl=en&geocode=&q=228+newark+ave,+JERSEY+CITY,+NJ+07302

  20. Libtard in Union says:

    Chi:

    Not sure if it will get you anything besides peace of mind but file your complaint here:

    http://www.consumerfinance.gov/

  21. JJ says:

    Above 10K wire NY bank to NY bank was guy’s last name similar to someone on the OFAC list? Sounds like AML flagged it. .

    chicagofinance says:
    August 9, 2013 at 11:02 am

    Q: I have a client that attempted to wire $12,000 from one bank (i.e. HSBC) to another in NYC. Bank screwed it up and it is about 3 weeks later and bupkiss…….is there a place to complain?

  22. Anon E. Moose says:

    Lib [18];

    My experience trying to use any FF mileage has been decidedly negative. When I have been able to use them, I’ve found that the bang for my mile is better if I use them for upgrades rather than seats.

    My preference leans to a CC with a fairly straightforward cash rebate. With cash, I can buy my airline tickets.

  23. chicagofinance says:

    I saw the instructions…..it said wire to BoNY and they wired it to Citi. Now Citi is saying FU, but who gives a fk…..HSBC screwed it up…..never seen bullspit like this….

    JJ says:
    August 9, 2013 at 11:20 am
    Above 10K wire NY bank to NY bank was guy’s last name similar to someone on the OFAC list? Sounds like AML flagged it. .
    hicagofinance says:
    August 9, 2013 at 11:02 am

    Q: I have a client that attempted to wire $12,000 from one bank (i.e. HSBC) to another in NYC. Bank screwed it up and it is about 3 weeks later and bupkiss…….is there a place to complain?

  24. yome says:

    United chase credit card is giving 50, 000 points to open a card with $95 fee waived first year. Need to spend $2000 with in 3 months. Points needed to Aruba 35, 000 points. I guess you can cancel after the trip

  25. chicagofinance says:

    The person is on the OFUCU list…..

    JJ says:
    August 9, 2013 at 11:20 am
    bove 10K wire NY bank to NY bank was guy’s last name similar to someone on the OFAC list? Sounds like AML flagged it. .

  26. pine_brook says:

    Hi Grim,
    Did your dug up work of basement walls fix the moisure problem? Can you let us know how much you had to spend for the fix?
    Thanks

  27. JJ says:

    HSBC is undergoing a massive AMl/OFAC review by fed, aint my customer I would just escheat that SOB. Remember you cant reverse a Fed Wire and third party wires to non customer accounts is hard to do.

  28. yome says:

    25
    Maui Hawaii 40,000 points round trip from newark

  29. Libtard in Union says:

    There are some decent secrets to finding free travel with miles. Though admittedly, it’s getting tougher and tougher to find something convenient. We didn’t have too hard of a time finding BA seats though. We booked in January. If you can’t plan that far ahead, though, I agree that they can be useless.

  30. Libtard in Union says:

    Yome,

    We did the Hawaii first class thing on an error in Continental’s system a while back. I think Gator and I went direct for 100K in first. Hard to top that. She’ll chime in with the deal at some point.

  31. yome says:

    Worst miles card I found was Delta American Express.You need 2x miles needed required by United and to buy miles and transfer miles,they charge so much money.

  32. yome says:

    30
    I agree Continental which is United today gives better offers.And booking is clear as a whistle.

  33. Libtard in Union says:

    Miles cards are not the way to go besides the initial promotions or to get free baggage if you fly a lot. I have about 4 different cards that I use to maximize my cash back. I only wish there was a way to pay my mortgages with them. In 90% of my purchases I get 5% back.

  34. ccb223 says:

    I find Jetblue AMEX to be good for miles

  35. Anon E. Moose says:

    16 county employees in New Jersey hold winning Powerball ticket, official says

    >The second winning ticket in the massive Powerball lottery jackpot will apparently be split 16 ways among a pool of New Jersey office workers. But don’t worry — they could still be millionaires several times over.

    The 16 employees of Ocean County, N.J., pooled their cash and bought the winning ticket at a grocery store in the coastal town of Little Egg Harbor, a county official told NBC New York. Their boss said they’re still showing up for work.<

    Of course they're still showing up. A) They haven't gotten paid yet; B) They're municipal office workers! What possible stress could they be dying to get away from? C) Their pension probably still rivals the jackpot.

    If you see a Maseratti or three in the employee parking of Monmouth town hall, you know why.

    The jokes really write themselves…

  36. Libtard in Union says:

    I won too.

    I’m up the $2 everyone else seemed to throw away.

  37. chicagofinance says:

    Better version of article because it quotes me at the end….
    http://www.app.com/article/20130808/NJNEWS/308080109/Ocean-County-employees-win-share-Powerball-jackpot

    Anon E. Moose says:
    August 9, 2013 at 12:48 pm
    16 county employees in New Jersey hold winning Powerball ticket, official says

    >The second winning ticket in the massive Powerball lottery jackpot will apparently be split 16 ways among a pool of New Jersey office workers. But don’t worry — they could still be millionaires several times over.

  38. chicagofinance says:

    Article in WSJ refers to Williamsburg a-holes all bent out of shape because older affluent people are moving in……the derisively call them “broken-hipsters”

  39. chicagofinance says:

    SPREAD SHEET

    Should Home Sellers Overprice or Underprice Real-Estate Listings?

    New research explores the power of price “anchoring” when buyers look at real estate.

    http://online.wsj.com/article/SB10001424127887324136204578643942655355194.html?mod=ITP_mansion_0

  40. Libtard in Union says:

    I was really hoping you would have said something like, “One has to take a step back and be objective about how to spend the money. Otherwise, one might end up squandering it all on hoes, weed and Depeche Mode tickets.”

  41. chicagofinance says:

    WSJ
    REVIEW & OUTLOOK

    Seizing Mortgages for Fun and Profit

    Perhaps the biggest eminent domain case since Kelo..

    The small city of Richmond, California has some big ideas about seizing private property, and now it also has a big lawsuit on its hands. This is what happens when politicians use government power to help themselves and their private financial partners at the expense of others.

    Last week the Bay Area city became the first in America to say it intends to use eminent domain to seize private mortgages whose value is higher than the current value of the homes they helped to buy. The city wants to force mortgage companies to sell loans on 624 properties, and if they refuse the city is threatening to seize the loans by brute government force.

    Richmond wants to refinance the loans through the taxpayer-backed (and broke) Federal Housing Administration, pool them into a new security, and sell them to other private investors. Homeowners will get a free principal reduction, and the politicians will claim they eased the financial burden on borrowers.

    The biggest winner will be Mortgage Resolution Partners, the San Francisco-based “community advisory firm” that came up with this idea, has been pitching it around the country, and will earn a fee on the repackaged mortgages. The losers will be investors who currently own the mortgages and are unlikely to receive fair-market value from the city. If the city does pay market value, Mortgage Resolution Partners might not make a profit with its loan rebundling.

    Which is where the lawsuit comes in. Three mortgage-bond trustees sued on Wednesday in federal court to block the property seizure as unconstitutional. They have a good argument. The Constitution’s Fifth Amendment says eminent domain must be for “public use,” but in this case the property seizure would benefit private, often out-of-state investors.

    Richmond claims the public purpose is to reduce the number of foreclosures and thus help neighborhoods battered by the housing bust. But the city can’t know how many foreclosures there will be because more than two-thirds of the 624 are still current on their monthly payments. Other Richmond homeowners may also have to pay a premium for future home loans due to the new political risk to lenders imposed by Mayor Gayle McLaughlin.

    All of this echoes the 2005 Kelo case when New London, Connecticut, seized private homes to clear land so Pfizer Inc. PFE +0.36% could build a research headquarters. Susette Kelo lost her home but Pfizer later abandoned the city. In a notorious 5-4 decision, the Supreme Court blessed the seizure, but we wonder if swing-vote Anthony Kennedy would do the same today. The lawsuit against Richmond says the city’s claim to help the local economy is merely a pretext to benefit private investors, and such pretexts are a key issue in Fifth Amendment property-rights cases.

    By the way, the plaintiffs include Fannie Mae and Freddie Mac, the government-run mortgage giants that buy mortgages in bulk and could be expected to lose big if other cities follow Richmond’s lead. Several cities have expressed interest, including Seattle and Newark, N.J. So taxpayers who bailed out Fan and Fred have a stake in the lawsuit against Richmond.

    The largest irony here is that the housing market is finally making a recovery. Last week’s second quarter GDP report showed that investment in housing grew by 13.4%, following 12.5% in the first quarter. Leave it to politicians and their financial cronies to interfere with progress.

    A version of this article appeared August 9, 2013, on page A12 in the U.S. edition of The Wall Street Journal, with the headline: Seizing Mortgages for Fun and Profit.

  42. chicagofinance says:

    “Ninety percent I’ll spend on good times, women and Irish Whiskey. The other ten percent I’ll probably waste.” Tug McGraw

    Libtard in Union says:
    August 9, 2013 at 1:29 pm
    I was really hoping you would have said something like, “One has to take a step back and be objective about how to spend the money. Otherwise, one might end up squandering it all on hoes, weed and Depeche Mode tickets.”

  43. Libtard in Union says:

    Nah…I’m pretty sure his wife wouldn’t allow that. It’s this house where JJ is staying…

    http://tinyurl.com/JJ-beach-house

  44. chifi, lottery expert. Who knew?

  45. Michael says:

    Thanks for the advice, got a little too comfortable yesterday with sharing my personal information.

  46. Michael says:

    What area’s in northern jersey do you guys think are best for purchasing multi’s?

  47. Michael says:

    10-libtard- nice info…appreciate it

  48. joyce says:

    The idea of beating the banks at their own game may seem like a rich joke, but Dmitry Agarkov, a 42-year-old Russian man, may have managed it. Unhappy with the terms of an unsolicited credit card offer he received from online bank Tinkoff Credit Systems, Agarkov scanned the document, wrote in his own terms and sent it through. The bank approved the contract without reading the amended fine print, unwittingly agreeing to a 0 percent interest rate, unlimited credit and no fees, as well as a stipulation that the bank pay steep fines for changing or canceling the contract.

    Agarkov used the card for two years, but the bank ultimately canceled it and sued Agarkov for $1,363. The bank said he owed them charges, interest and late-payment fees. A court ruled that, because of the no-fee, no-interest stipulation Agarkov had written in, he owed only his unpaid $575 balance. Now Agarkov is suing the bank for $727,000 for not honoring the contract’s terms, and the bank is hollering fraud. “They signed the documents without looking. They said what usually their borrowers say in court: ‘We have not read it,’” Agarkov’s lawyer said. The shoe’s on the other foot now, eh?
    http://rt.com/business/man-outsmarts-banks-wins-court-221/

  49. grim says:

    A whole 16 hours in LA. Waitin on a red eye back and lovin life. Nothing left to do now but drink. Might be easier just to hop over to Singapore.

  50. Fabius Maximus says:

    #51 grim

    Go take a look at the departures board see if anything catches your eye. You have the usual Vegas, San Diego and San Fran on the board and a nice V1rg1n Atlantic to Dallas. My choice would be the AA to Austin. Go party all night and fly to NJ in the morning.

  51. grim says:

    Vegas is the no brainer choice, the flight on Southwest is almost free, and the Wynn has always treated me well.

    Alas, it’s the last weekend of the state fair, and the little one has yet to meet her first sheep.

    I missed the last flight out to Ewr by a couple of minutes. Which means I’ve got enough time to kill to have racked up a $60 bar tab already.

    Speaking of miles, I may do the united cc deal for 50k miles, I’ll be able to get 3 first class seats out to Maui in December.

  52. Libtard at home says:

    Michael Kinzig…is that you Clot?

  53. michael (48)-

    Trenton.

  54. stu (54)-

    Trolling at a site devoted to my old line of work ain’t what gets me going.

  55. NJGator says:

    Lib 31 – the Continental Hawaii deal was a mistake on their website. Found 3 non-stop first class standard reward tickets on the EWR-HNL route on weekend days during high season. The website let me go all the way to seat selection and would then error out. Called customer service and was put on hold for over 30 minutes. Agent came back and told me it was my lucky day. Turns out the seats were really only available if your travel originated out of HNL – they set aside extra seats so their HNL based customers actually had a chance to use their miles. Agent told me that I was the first person to report the issue so they were going to honor it and let me book.

    It was a sign that we needed to go back to Hawaii.

    That was before they were United and still gave a damn about customer service..

  56. Ben says:

    Vegas is a no brainer. How sad is it that I can fly out to Nevada, spend a week on the strip in Vegas, and have it cost less than driving down to AC and spending the week?

  57. Comrade Nom Deplume says:

    Got back from Philly a while ago. Saw Pats and Iggles. Tebow played entire second half and did he ever suck.

  58. Comrade Nom Deplume says:

    [47]. Michael,

    There are smart people here who could track you down with just a few pieces of info. And you don’t want Scrapple knowing where you live.

  59. Comrade Nom Deplume says:

    A pattern has emerged . . . Actually, it emerged some time ago. This is just the latest example.

    http://www.cnn.com/2013/08/10/us/arizona-federal-aid-denied/index.html?hpt=hp_t2

  60. Anon E. Moose says:

    ChiFi [38];

    Nice job getting yourself in the reporter’s rolodex.

  61. chicagofinance says:

    Moose: I still maintain the best press coverage ever by a member of this blog was clot’s “No Snooki”……..fantastic….

  62. chicagofinance says:

    I don’t follow, but I know some of you are interested…..
    LG Wins New Jersey Court’s Approval to Build Atop Hudson Cliffs
    http://www.bloomberg.com/news/2013-08-09/lg-wins-new-jersey-court-approval-to-build-on-hudson-cliffs.html

  63. chicagofinance says:

    The End Is Nigh (clot Beauty Contestant Edition):

    Utah beauty queen charged with bomb possession after allegedly throwing ‘explosives’ at pedestrians in drive-by spree

    SALT LAKE CITY — Prosecutors filed charges of bomb possession Friday against a recently crowned Utah beauty pageant winner.

    Kendra McKenzie Gill was arrested last weekend with three accomplices for what one described as a prank. All four face the same set of four felony charges, prosecutor Blake Nakamura said Friday.

    The 18-year-olds were arrested Saturday after driving around neighborhoods and allegedly tossing plastic bottles filled with caustic chemicals at people they knew.

    “We don’t really understand a clear reason for their behavior,” Nakamura said. “The reason we charged them is obviously, what they possessed was indeed explosives, and we’re alleging they were throwing them near homes and at people, and therefore, had the potential to cause a great deal of harm.”

    Felony bomb possession is punishable by 1 to 15 years in prison.

    Gill was crowned Miss Riverton, topping a slate of nine beauty contestants earlier this summer in the Salt Lake City suburb. She showed off years of piano training with a Scott Joplin number and took home a $2,000 scholarship.

    “They were throwing them at both property and people,” Unified Fire Authority Capt. Clint Mecham told KUTV-TV earlier this week. “This goes well beyond a teenage prank.”

    A Riverton pageant official didn’t immediately return calls Friday on Gill’s prospects for moving up in beauty competitions, or whether her title will be revoked.

  64. Essex says:

    76. Probably HcL and tinfoil. But what do i know?

  65. Brian says:

    Just your average case of ploliticians, nimbys, and environmentals chasing good jobs out of NJ.

    chicagofinance says:
    August 10, 2013 at 11:05 am
    I don’t follow, but I know some of you are interested…..
    LG Wins New Jersey Court’s Approval to Build Atop Hudson Cliffs
    http://www.bloomberg.com/news/2013-08-09/lg-wins-new-jersey-court-approval-to-build-on-hudson-cliffs.html

  66. Brian says:

    Right of passage for the avg 18 year old…..I always thought.

    Essex says:
    August 10, 2013 at 11:38 am
    76. Probably HcL and tinfoil. But what do i know?

  67. chicagofinance says:

    Change you can believe in……

    Another golfing buddy of Obama in hot seat over staffer’s alleged ‘kickbacks’
    Illinois honcho’s aide eyed in ‘kickbacks’
    By GEOFF EARLE Bureau Chief

    WASHINGTON — Another one of President Obama’s golfing pals is in the rough.

    Dr. Eric Whitaker, a longtime Obama friend from Chicago who has golfed his way through Obama’s term in office — including at a round for the president’s 52nd birthday last week — is cooperating with the feds as they probe a $433,000 kickback scheme.

    Whitaker’s former chief of staff at the Illinois Health Department is under investigation for allegedly taking kickbacks starting in 2006. Whitaker ran the department from 2003 to 2007.

    A federal grand jury indicted Quinshaunta Golden this week on fraud, bribery and theft charges as part of an ongoing probe into sleazy graft in Illinois contracts that has ensnared 13 people.

    “I had no firsthand knowledge of the activities outlined in this indictment and was not involved in any way,” Whitaker said in a statement issued Thursday.

    “As requested by the US attorney, I have been fully cooperating with the investigation into these matters.”

    There’s no information that he’s a target in the scheme. Last year, Whitaker left a job at the University of Chicago hospital, where Golden also worked.

    Another Obama golf pal, high-school friend Bobby Titcomb, was arrested in 2011 on suspicion of soliciting a hooker in an undercover sting in Honolulu. But Obama still invited him him to golf afterward.

    Whitaker first met Obama on the basketball court at Harvard, where both were pursuing advanced degrees. He has vacationed with Obama and donated to campaigns going back to Obama’s 2006 Senate run. He’s also been a visitor to the White House for such events as a Motown tribute and a Super Bowl party.

    According to the indictment, Golden is alleged to have given up to $1 million in government grants to a consultant who was supposed to kick back half the money to her.

    Golden also stands accused of hiring a security consultant to check the background of potential nursing-home employees for criminal convictions. The firm allegedly downplayed ex-convicts’ violent crimes and the risks they posed to elderly residents.

    US Attorney James Lewis indicated Whitaker was not currently a target.

    “There is nothing in the material you have today that leads towards an answer to that question,” he said at a press conference.

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