David Izsak, 50, a Chicago real estate professional, was sentenced to five years in federal prison for defrauding multiple financial institutions out of more than $3 million, the U.S. Attorney’s Office for the Northern District of Illinois announced on Friday.
Izsak, who was the sole proprietor of Premier Assets Inc. and Premier Properties Enterprises, Inc., both based in Skokie, Illinois, carried out the fraudulent scheme from 2005 to 2018. As a licensed real estate professional, Izsak manipulated residential loan processes through false statements, concealment of unpaid loans, and the submission of fabricated documents.
One of the key tactics he used involved submitting false lien releases to the Cook County Recorder of Deeds, making it appear as though loans had been paid off when they had not. These false lien releases included names of fake attorneys and bank employees to deceive institutions into believing the loans were settled.
In one case, Izsak fraudulently released a lien on a property and then sold it to an unsuspecting buyer. In another, he obtained six mortgages on a single property by continuously releasing prior liens without repayment. Furthermore, he submitted fake tax returns and financial documents to secure a loan for purchasing a 57-foot yacht, the “Flying Lady,” which was later seized by federal authorities in 2019.
As a result of the investigation, two other individuals, Yale Schiff and Jason Schiff, were convicted. Yale Schiff received a three-year prison sentence in January, while Jason Schiff was sentenced to three years of probation.
Izsak’s sentencing underscores the severe consequences of financial fraud and the lengths to which criminals will go to deceive institutions and individuals alike.
