Former Columbus Mayor Enters Guilty Plea On Federal Bank Fraud Charges

(Columbus) Businessman and former Columbus mayor Mike Eisenga is agreeing to enter a guilty plea on federal bank fraud charges. The indictment filed in October 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. 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 2019, 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 last February but a judge dismissed the case in the summer. Attorneys for Eisenga filed a plea agreement in federal court to plead guilty. The fraud charge carries a maximum penalty of 30 years in prison and a one-million-dollar fine but court documents do not indicate what his sentence may be other than he would get the “maximum available reduction” for accepting responsibility. A plea hearing date has not yet been set.