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OPERATOR OF LAKE BLUFF HOME CHURCH FACES MORE LEGAL PROBLEMS
By Susan Kuczka
Chicago Tribune
http://www.chicagotribune.com/news/local/c hi-lake-bluff-church-19-dec19,0,211749.story
Dec 19 2008
IL
A Lake Bluff man who gained notoriety when he got an $80,000
property-tax break on his North Shore mansion when he converted it
into a church faces more legal woes as he fights to keep his tax
exemption on the books, court records show.
NorStates Bank of Waukegan recently filed more than a dozen foreclosure
lawsuits against George Michael, a Chicago banker and real estate
company owner who won the property-tax break on his home in June. He
told state officials that he set up an Armenian church in his $4
million residence after his online ordination through the Church of
Spiritual Humanism.
Michael also recently appeared in federal court to defend himself in
a Federal Deposit Insurance Corp. lawsuit that claims mismanagement
at the Chicago bank he operates with his brother, Robert, a retired
Chicago police officer. Testimony in the case recently wrapped up
in U.S. District Court in Chicago. A ruling is expected next spring,
an FDIC spokeswoman said.
Meanwhile, Lake Bluff's village attorney, Peter Friedman, said the
village's bid to overturn an Illinois Revenue Department decision to
award George Michael the property-tax break on his lakefront home is
moving forward.
Michael and his wife, Susan, gave depositions this month about the
activities at their residence, where the family says the Armenian
Church of Lake Bluff holds Sunday religious services for themselves
and close friends. Michael previously said he opened the church so his
physically disabled wife would not have to travel to observe her faith.
Friedman said he believes that the Michaels' recent statements may have
damaged their own cause. George Michael admitted in the deposition
that his church "is not functioning in any kind of organized way,
its finances are very informal, bylaws are not complied with, and
there's no minutes, or anything like that," Friedman said.
"I think this informality will help a lot because they have to meet
their burden that this is a real, live operating church, and all that
lack of structure, I think, will be hard for the administrative law
judge to ignore," Friedman said.
Michael's attorney, Mark Belongia, disagreed.
"We're comfortable with our position," he said, declining to make
additional comment.
It was after Michael obtained an online pastor's degree that he asked
the Revenue Department to grant him an exemption from paying his tax
bill. The Revenue Department granted the exemption in June after Lake
Bluff and Lake County officials rejected it, saying the home served
primarily as a residence--not a church.
If the village loses its appeal with the Revenue Department, Michael
could still have to pay more than $100,000 for violating the village's
zoning ordinances. Village officials maintain that Michael needs a
special permit to hold religious services in his home. A lawsuit to
decide whether Michael will have to pay the fine is pending in Lake
County Circuit Court.
The FDIC took Michael to court in connection with the operation
of Citizens Bank and Trust Co. of Chicago. The FDIC suit said the
Michael brothers misused the bank's assets in personal real estate
transactions.
By Susan Kuczka
Chicago Tribune
http://www.chicagotribune.com/news/local/c hi-lake-bluff-church-19-dec19,0,211749.story
Dec 19 2008
IL
A Lake Bluff man who gained notoriety when he got an $80,000
property-tax break on his North Shore mansion when he converted it
into a church faces more legal woes as he fights to keep his tax
exemption on the books, court records show.
NorStates Bank of Waukegan recently filed more than a dozen foreclosure
lawsuits against George Michael, a Chicago banker and real estate
company owner who won the property-tax break on his home in June. He
told state officials that he set up an Armenian church in his $4
million residence after his online ordination through the Church of
Spiritual Humanism.
Michael also recently appeared in federal court to defend himself in
a Federal Deposit Insurance Corp. lawsuit that claims mismanagement
at the Chicago bank he operates with his brother, Robert, a retired
Chicago police officer. Testimony in the case recently wrapped up
in U.S. District Court in Chicago. A ruling is expected next spring,
an FDIC spokeswoman said.
Meanwhile, Lake Bluff's village attorney, Peter Friedman, said the
village's bid to overturn an Illinois Revenue Department decision to
award George Michael the property-tax break on his lakefront home is
moving forward.
Michael and his wife, Susan, gave depositions this month about the
activities at their residence, where the family says the Armenian
Church of Lake Bluff holds Sunday religious services for themselves
and close friends. Michael previously said he opened the church so his
physically disabled wife would not have to travel to observe her faith.
Friedman said he believes that the Michaels' recent statements may have
damaged their own cause. George Michael admitted in the deposition
that his church "is not functioning in any kind of organized way,
its finances are very informal, bylaws are not complied with, and
there's no minutes, or anything like that," Friedman said.
"I think this informality will help a lot because they have to meet
their burden that this is a real, live operating church, and all that
lack of structure, I think, will be hard for the administrative law
judge to ignore," Friedman said.
Michael's attorney, Mark Belongia, disagreed.
"We're comfortable with our position," he said, declining to make
additional comment.
It was after Michael obtained an online pastor's degree that he asked
the Revenue Department to grant him an exemption from paying his tax
bill. The Revenue Department granted the exemption in June after Lake
Bluff and Lake County officials rejected it, saying the home served
primarily as a residence--not a church.
If the village loses its appeal with the Revenue Department, Michael
could still have to pay more than $100,000 for violating the village's
zoning ordinances. Village officials maintain that Michael needs a
special permit to hold religious services in his home. A lawsuit to
decide whether Michael will have to pay the fine is pending in Lake
County Circuit Court.
The FDIC took Michael to court in connection with the operation
of Citizens Bank and Trust Co. of Chicago. The FDIC suit said the
Michael brothers misused the bank's assets in personal real estate
transactions.