David Izsak, a former real estate professional from the Chicago area, was sentenced to five years in prison on March 28 for his role in a scheme to defraud more than $3 million from multiple financial institutions.
Izsak was a licensed real estate professional and the sole proprietor of Skokie, Ill.-based Premier Assets Inc. and Premier Properties Enterprises, Inc.
Izsak was convicted in 2023 on 10 counts of financial institution fraud in connection with his criminal activities from 2005 to 2008, which included obtaining residential loans through false statements, concealing other unpaid loans, and falsely obtaining credit.
As part of the scheme, Izsak submitted or caused to be submitted to the Cook County Recorder of Deeds fictitious lien releases that purported to be from lenders stating the loans were paid in full. The bogus lien releases included false names of attorneys and bank employees.
In one instance, after causing a lien to be released, Izsak sold the property to an unsuspecting buyer. In another, he obtained six mortgages on a single property, obtaining a new loan after fictitiously releasing the prior loan without repaying it.
Izsak also obtained a loan to buy a 57-foot yacht known as the “Flying Lady” by submitting fraudulent tax returns and financial information to the lender. The yacht was seized by federal authorities in 2019.
“Izsak engaged in blatantly fraudulent conduct for many years,” Assistant U.S. Attorney Elly Moheb said in the government’s sentencing memorandum. “The entire purpose of the scheme was to line his own pockets, so that he could live a lifestyle he didn’t earn.”
Two other individuals; Izsak’s business associate Yale Schiff and his brother, Jason Schiff, were also convicted as part of the federal investigation. Yale Schiff was sentenced earlier this year to three years in prison for fraudulently obtaining millions of dollars in mortgage and vehicle loans and using stolen identities to secure credit from financial institutions.
Jason Schiff pleaded guilty to causing a false report and statement to be made to the U.S. Department of Housing and Urban Development. He was sentenced to three years of probation.