Keisha Lance-Bottoms, a candidate for Atlanta mayor in the Dec. 5th runoff, has a 20-year history of forcing our local governments and her homeowners’ associations to go to Fulton County Superior Court to file liens against her homes. In that context, and as a forensic accountant, I look at her Martha’s Vineyard real estate transaction very skeptically.
Consider that the state of Georgia, Fulton County, City of Atlanta, Regency Park HOA and Guilford Forest HOA were all forced to go to Fulton County Superior Court for payment by filing property liens – all while Mrs. Bottoms was an Atlanta City Council member.
Insider Real Estate Transaction?
Her Martha’s Vineyard property was purchased in June 2016 for $1,010,000. She financed it with a mortgage of $808,000, implying a down payment of $202,000.
By all impressions Mrs. Bottoms was struggling financially based on her history of property liens and certainly has a terrible credit record. How could she possibly borrow nearly $1 million on a vacation home with her credit history? What did she disclose to the lender and the seller? How did she find the house and lender to begin with? Did the Cape Cod Five Cents Savings Bank not know her credit history? Where did the down-payment come from?
Conflict of Interest?
The seller appears to be an executive with Cantor-Fitzgerald based on the best research available. This would be very problematic, if true, given that the Atlanta Firefighters Pension Fund is a plaintiff against Cantor-Fitzgerald in Anti-Trust litigation (1:15-cv-07111-PGG) in the Southern District of New York.
Mrs. Bottoms serves as a city trustee on the Atlanta Firefighters Pension Fund. Investment firms generally are promoting themselves to do business with the city, so I’d like to understand if the firm was pursuing work with the city and if in fact the firm is currently providing services that generate income to the firm. If you don’t know the history, the previous investment consultant to the Pension Fund has been charged by the Securities & Exchange Commission for defrauding the Pension Fund.
Rental Property?
While Mrs. Bottoms identified the Martha’s Vineyard property in her personal financial disclosure, it was identified as a rental property in Oak Bluffs.
Interestingly, her mortgage prohibits rental, requiring that Mrs. Bottoms “keep the property available for Borrower’s exclusive use and enjoyment at all times.” So how could this be a rental property?
Also of interest, the house is advertised for rent. With “prolific” corruption going on in city hall (the words of a federal prosecutor), I have grave concerns about candidate Bottoms and question the “arms-length” nature of this real estate transaction.
I have not been compensated for the research, analysis and opinions I’ve expressed.
Justin Wiedeman is an Atlanta professional engineer and businessman.
