Investor says he went to feds early about indicted developer

One of Illinois' most prominent divorce lawyers says he has a measure of satisfaction that a Libertyville man is charged with running a $10 million real-estate investment scam because he brought his suspicions to federal authorities about five years ago.

Bernard Rinella, whose parents opened the state's oldest family law firm in 1932, said he turned to the U.S. Attorney's Office after Forrest David Laidley sold land for a Glenview development without telling him or other investors.

Last week, federal prosecutors announced Laidley, 65, was charged with mail, wire and bank fraud in a 14-count indictment. The owner of Forrest Properties Inc. is expected to plead not guilty at his arraignment July 30, in U.S. District Court in Chicago.

Authorities say investors gave Laidley at least $10 million from 1999 to 2004 for retail and office projects in Glenview, Round Lake and Lincolnshire. Prosecutors contend Laidley used the money for his benefit and to repay delinquent loans, and for unrelated real-estate developments.

Defense attorney Kenneth Cunniff said Laidley voluntarily extended the statute of limitations for the federal government and has cooperated with prosecutors. Cunniff said Laidley, who works as a lawyer, represented to investors what he believed was accurate about his ventures at the time and did nothing wrong.

"Truly a wonderful man whose investments went south," Cunniff said of Laidley.

Rinella was part of a group that provided Laidley with about $1.2 million for construction of Glen Gateway Shoppes across from a Glenview Metra station. Rinella said he wasn't concerned about the Glenview deal because he invested in the Village Green plaza in Lincolnshire that Laidley built.

However, federal prosecutors allege Laidley made three transactions from May 2002 to September 2003 and didn't give investors proper notice he sold the Glenview project. Authorities contend Laidley misused about $200,000 from Glen Gateway investors for loan repayments and $17,000 to cover his summer home mortgage.

Rinella, a lawyer since 1961, said he thought something was amiss when he noticed a sign stating the Glenview mall was for sale, and later went to federal prosecutors. He said he didn't know where the Laidley investigation was headed after receiving little news for roughly five years.

"I'm happy as (heck) there's been action," Rinella said Monday.

U.S. attorney spokesman Randall Samborn declined to comment.

Nursery owner John Banghart of Northbrook, who unsuccessfully invested $50,000 in Glen Gateway, said he and others approached the Lake County prosecutors with concerns about Laidley in 2004. About 20 civil lawsuits were filed against Laidley in 2003 and 2004.

Cunniff said Laidley still has many supporters, including T. Kendall Hunt, chairman of the board and chief executive officer of Vasco Data Security International Inc. in Oakbrook Terrace.

Hunt said nothing untoward ever occurred in a business relationship he had with Laidley dating to 1985. Laidley served on publicly traded Vasco's board from 1997 to 2003.

"The David I know is a very religious, proper guy," said Hunt, who bought Laidley's 4,034-square-foot Libertyville house out of foreclosure in 2006 and has allowed him to live there.

Laidley handled real-estate transactions for the Archdiocese of Chicago from 1988 to 1996.