The 1916 ComEd substation-turned-mansion that sold in 2008 has finally had its price tag revealed.
Accused fraudster Rishi Shah paid $8 million in July 2018 for the 15,000-square-foot mansion, about 53 percent lower than the $15 million sellers Bruce and Michele Gelman were asking in 2015. He did not obtain a mortgage.
Court documents from Shah’s recent indictment case revealed the price. The co-founder of Chicago-based Outcome Health is accused of overbilling customers of its ad platform and prosecutors claim Shah has underreported his assets to unfreeze nearly $10 million from federal control, Crain’s reported.
Shah was renting the property for $50,000 a month before he purchased the property. At the time, the sale would’ve been the 12th highest home sale in Chicago for 2018. According to Cook County Recorder of Deeds, the previous owners paid $3.75 million for the property in Feb. 2008. The home was first listed by the Gelmans in April 2015 at $13 million.
The home was built in 2009 from the old ComEd station located across the street from Newberry Library. The four-story mansion has six bedrooms, nine bathrooms and was designed by Hermann von Holst.
By TRD STAFF FEB 21, 2020 11:15 AM
I must admit I love a smart fraudster! While today are so many of our criminals are mentally retarded, and always get caught because they are just so stupid, at least this guy knows how to buy real estate.
He actually purchased this house for a tad over 50 cents on the dollar (based on the sellers asking price). At least this guy was thinking how to preserve is ill-gotten gains by not overpaying for assets like so many other fools do! Buying real estate right is not that hard especially if you are an all-cash buyer like this guy. However, he made his money is his business but I do have to give him credit. He sure knows how to spend it wisely. If a house is worth anywhere near the sellers asking price he got an amazing deal, and that is the secret to real estate. Getting value when you buy, thus earning instant equity at closing!
Again, most criminals blow through their money rather quickly by making large purchases that are erratic and not thought out. This buyer had to be thinking or else he would have ended up paying full retail. Not the case. He stole the house plain and simple.
About The Author
- Robert Louis Annenberg Is a 40 year seasoned property owner, manager, investor, builder/developer and business man who is also an author of five published books to date (Amazon.com) and the chief editor of LifeQuestJournal.com. He can be reached at: Info@RobertAnnenberg.com and (201) 289-2500.
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