2012-10-19 / Top Stories

Congressman Meeks’ Money-Man Pleads Guilty

By Howard Schwach

A Queens businessman who is under investigation by the House Ethics Committee for a “loan” that he gave to Congressman Gregory Meeks pled guilty to an unrelated mortgage fraud scheme last week, an indication to some insiders that he was allowed to plead guilty in return for information about Meeks and his transgressions.

Real estate agent Edul Ahmad, pleaded guilty on October 10 to a $50 million mortgage-fraud scheme. He’s facing 10 years in federal prison, plus millions in fines and restitution.

Political insiders say it will be interesting to see if part of Ahmad’s plea deal includes providing details on the $40,000 he loaned Meeks in 2007 — money that the Congressman failed to list on his financial-disclosure forms, and paid back only after the FBI started asking questions about the “loan,” which had no interest payments and no repayment schedule.

The House Ethics Committee has been investigating the disclosure issue for more than two years now and it is expected that it will release the investigation report right after the coming presidential election.

Ahmad is the second Meeks insider who recently paid a high price for his shady dealings.

A longtime Meeks insider and contributor,

R. Allen Stanford is a former Texas tycoon now serving a 110-year sentence for swindling investors out of $7 billion over 20 years in a huge Ponzi scheme.

After receiving the $40,000 loan from Ahmad, Meeks desperately worked to set up a meeting between Ahmad and Stanford, host of several Meeks fundraisers in the Caribbean and other warm weather destinations, which, investigators say, might have violated campaign-finance laws.

The US Attorney for the Eastern District is probing millions in taxpayer dollars Meeks directed to a nonprofit, the Greater Jamaica Development Corporation.

The feds first started looking at Meeks after published stories in The Wave and other newspapers in 2010 revealed that the New Direction Local Development Corp. — a nonprofit Meeks helped found along with State Senator Malcolm Smith — collected thousands of dollars for Hurricane Katrina victims and distributed almost none of it to the victims.

In addition, airport development money was steered into that fund and the money, more than $250,000, has never been adequately accounted for.

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