Feds Bust Meeks’ Moneyman
On Saturday, the Federal Bureau of Investigation (FBI) arrested a Queens businessman who has close ties to Congressman Gregory Meeks, who represents portions of Rockaway in Congress. One of the ties between the businessman and Meeks, federal sources say, is a questionable $40,000 “loan” to Meeks, who is under investigation by both state and federal authorities in relation to the loan and several other issues, including a Hurricane Katrina charity and a non-profit that was started by Meeks and State Senator Malcolm Smith.
Businessman Edul Ahmad is the key figure in the loan Meeks did not repay for three and a half years. It was repaid only when the FBI began to investigate the loan, sources say.
Ahmad was hit with a criminal complaint alleging that he conducted an extensive scheme to commit mortgage fraud, regularly lying about applicants’ income and using straw buyers to cover up his involvement in the transactions.
Ahmad was released on $2.5 million bond. Both he and his attorney declined to comment for this story.
In January of 2007, Ahmad gave Meeks $40,000 to finish paying off the Congressman’s new $830,000 home. According to federal sources, there was no talk of interest rates, collateral or due dates and no documents were ever generated involving the loan.
Meeks did not list the transaction on his 2007 or 2008 disclosure forms, revealing it for the first time after the investigation began, in a form for 2009 that was filed in mid-2010.
In July of 2010, with news stories circulating about the loan and with the FBI asking him questions and requesting documents, Meeks suddenly repaid the money and called it a “loan,” on his disclosure forms for the first time, records show.
Meeks is the subject of an ongoing FBI investigation, as well as a probe by the Office of Congressional Ethics in connection with the loan.
He is also the subject of a New York State investigation into his activities in relation to the NOAH-F Katrina charity, where money was never used for victims, and with the New Directions in Community Empowerment non-profit that was run by him and Smith.