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Financial Supporter of Alexi Giannoulias Hit With Bank Fraud Charges

Embattled Illinois Democrat Senate hopeful Alexi Giannoulias got some bitterly bad news today, as he learned that Nick Giannis, the owner of the Boston Blackie's restaurant chain and a big financial supporter of his political career, was hit with bank fraud charges.

The Chicago Sun-Times explains:

"The owner of the Boston Blackie’s restaurant chain — a man with strong political ties to U.S. Senate candidate Alexi Giannoulias — was charged today with bank fraud, along with the owner’s son and an employee.

Boston Blackie’s owner Nick Giannis, 62, his son, Chris Giannis, 38, and Boston Blackie's manager Andy Bakopoulos, 38, allegedly defrauded Charter One and Washington Mutual banks of nearly $2 million, Cook County prosecutors said.

Giannoulias’ family owns Broadway Bank, one of the banks named in the court documents. The bank was not a victim of the alleged scheme, officials said.

Nick Giannis was caught at the Canadian border with his Greek passport this morning.

He and the younger men used other Chicago area banks — including Giannoulias’ family’s Broadway Bank — to carry out their “sophisticated, complex” check-kiting scheme, Cook County State’s Attorney Anita Alvarez said.

When pressed about whether Broadway Bank officials knew about the alleged scheme, Alvarez simply said, “These are the three we feel are responsible for this particular case.”

Giannis contributed $115,000 to Citizens for Giannoulias between 2005 and 2008 alone and secured millions of dollars in mortgages with Broadway Bank, records show.

A spokeswoman for Giannoulias said today that the Senate candidate and Giannis aren’t related. Sources said Giannoulias and one of Giannis’ sons are longtime friends.

Broadway Bank has been a political albatross for Giannoulias, who is now the Illinois state treasurer. Giannoulias was the bank’s chief lending officer for several years. He has acknowledged the bank is in danger of failing before the November election.

Boston Blackie’s, which has eight locations in the Chicago area, had filed for Chapter 11 bankruptcy protection in November of last year.

Alvarez said her office began investigating the scheme in early 2009 after authorities were tipped off.