(Columbus) Former Columbus mayor and businessman Mike Eisenga has been indicted on federal bank fraud charges. The indictment filed Thursday alleges that the 49-year-old had applied for a $6.9-million-dollar loan from an Illinois credit union to purchase a commercial property in Columbus.
The Wisconsin State Journal says that Eisenga claimed the property was under a 20-year lease to Festival Foods and guaranteed by Supervalue Holdings but neither the holdings company nor the related documentation are said to be legitimate. The Alliant Credit Union of Rolling Meadows, Illinois approved the loan in February of 2017 and Eisenga’s company reportedly defaulted two years later.
In July of last year, a judgement was entered in a civil lawsuit seeking foreclosure and the property sold for $2.2-mllion dollars in a sheriff’s sale three months later. The credit union awarded a judgement in excess of $5-million dollars.
Eisenga’s company filed for bankruptcy in February but a judge dismissed the case over the summer.
In a statement, Eisenga’s attorney said his client will cooperate fully and looks forward to resolving the matter promptly and properly.