Office Overview | Victim Services | Press Room | Community Resources | What's New | Careers | Juvenile Justice | Contact
FOR IMMEDIATE RELEASE: March 12, 2010 Three Chicago men who own and operate a popular Chicago restaurant chain were charged today in a financial crimes investigation alleging they engaged in a check kiting scheme that defrauded at least two Chicago-area banks out of more than $1.8 million, Cook County State’s Attorney Anita Alvarez announced today. The owners of Boston Blackie’s Restaurant and a restaurant employee face multiple charges of felony theft and other financial crimes in connection with the scheme, which Cook County prosecutors say was facilitated through the use of internet wire transfers, electronic bill payments and electronic stop payment orders. Two of the defendants are scheduled to appear in Central Bond Court at 26th and California today at 11:00 a.m. The investigation was conducted jointly by the State’s Attorney’s Special Prosecutions Bureau and the Chicago Police Department. “My office remains committed to rooting out and prosecuting white collar crime at the local level here in Cook County and this case is a prime example of our ongoing efforts,” Alvarez said. “As honest taxpayers continue to bear the costs of unprecedented bank bailouts, this office shall continue to bring justice to the criminals who have looted these institutions for their own financial gain.” According to prosecutors, the men engaged in a “check kiting” scheme – a form of financial fraud in which offenders typically write checks from banks where they have existing accounts with non-sufficient funds, and then deposit those checks with another financial institution and withdraw the funds before the checks actually clear, leaving the financial institution that covered the checks the victim of the theft. Many banking institutions make deposited amounts available immediately for high volume business and commercial accounts. According to prosecutors, two banks have been identified as the initial victims in this case, Charter One and Washington Mutual. The financial scheme also involved other area banks, including J.P. Morgan Chase, Broadway Bank, New Century Bank and Citizen’s Bank and Trust. Charter One Bank sustained losses of approximately $1.03 million during the course of one month alone (between January and February of 2009). Washington Mutual sustained losses of approximately $833,700 based on thefts that occurred in September of 2008. State’s Attorney Alvarez thanked the Assistant State’s Attorneys and investigators from the Public Corruption and Financial Crimes Unit as well as the Chicago Police Department for their work on the case. The public is reminded that criminal charging documents contain allegations that are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the state has the burden of proving guilt beyond a reasonable doubt.
Cook County State's Attorney's Office:
Press Releases
Anita Alvarez
Cook County State's Attorney
Communications Department
Chicago, IL 60602
(312) 603-3423
saomedia@cookcountygov.com
State's Attorney Announces Charges in Million Dollar Check Writing Scheme
Chris Giannis, 38, and his father Nick Giannis, 62, as well as Boston Blackies employee Andy Bakopoulos, 38, were all charged today with two counts of felony theft (a Class 1 felony punishable by imprisonment of 4 to 15 years). Chris Giannis has also been charged with two counts of being an Organizer of a Continuing Financial Crimes Enterprise (a Class X felony punishable by imprisonment of 6 to 30 years). Chris and Nick Giannis are the owners and operators of the Boston Blackies restaurant chain and its related corporations based in downtown Chicago at 801 W. Adams Street. Bakopoulos works as a manager for the restaurant.
According to investigators, the defendants employed different methods to perpetrate their fraud. In some cases they would deposit multiple checks at the financial institution and then withdraw the money electronically before the checks cleared. In other cases they would deposit multiple Boston Blackies’ checks at the bank and then withdraw those funds using wire transfers, checks and electronic bill payments. A short time after each deposit and after the withdrawal of funds, a stop payment order was then placed on the checks utilizing an internet user account.