Forrest David Laidley – the builder of a prominent Lincolnshire mall and former board member of a publicly traded company – has admitted fleecing investors and financial institutions.
Although federal prosecutors say Laidley fraudulently obtained more than $10 million, his attorney has filed documents contending the amount is overstated.
Laidley, 65, an attorney from Libertyville, is scheduled for sentencing June 29 in federal court in Chicago. He entered a blind guilty plea Thursday to one count each of mail and bank fraud before U.S. District Judge Blanche Manning.
Court documents state Laidley gained “well over” $10 million by selling limited partnerships and short-term, high-interest guaranteed promissory notes, sometimes called bridge loans, to more than 100 investors from 1999 to 2004.
Laidley’s lawyer, Kenneth Cunniff, could not be immediately reached for comment today.
Prosecutors said Laidley, individually and through his Forrest Properties Inc., offered returns of 10 percent to 40 percent to investors who provided him with cash toward purported retail and office projects in Lincolnshire, Round Lake and Glenview.
Laidley, who could not be immediately reached today, made “Ponzi-type” payments to investors, according to prosecutors. He’s accused of using the $10 million for personal expenses and on unrelated real-estate projects.
Problems related to Laidley’s investment opportunities were highlighted in a series of Daily Herald stories in 2004. In interviews at the time, he said he had a plan to take care of his investors.
About 20 civil lawsuits were filed in Lake, Cook and DuPage counties contending Laidley was not returning millions of dollars invested with him.
Laidley served on the board of Oakbrook Terrace-based Vasco Data Security International Inc. from 1997 to 2003. He also was on the board of directors at Libertyville’s Harris Bank branch and Carmel Catholic High School in Mundelein.
Forrest Properties developed Lincolnshire’s upscale Village Green shopping, restaurant and office plaza at Route 22 and Milwaukee Avenue. Village Green landed in bankruptcy court in 2004, with new owners eventually taking over for Laidley.
Records show Laidley remains authorized to practice law in Illinois. The state granted him a 2010 law license.
Laidley faces a maximum of 30 years in prison on each count and a $1 million fine.
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