The Illinois Metropolitan Investment Fund (IMET) is a local government investment pool created in 1996 to assist Illinois local governments (municipalities, park districts, school districts, libraries, pension funds etc.) with the investment of public funds. The Village is one of nearly 300 local government entities that participate in IMET.
On September 29, 2014 IMET was informed of defaults on certain guaranteed loans resulting from fraud on the part of an approved lender of the United States Department of Agriculture (USDA).
On October 29, 2014, IMET reported that claims filed with the USDA to honor the fraudulent loans were denied and the Village is now at risk of losing $902,000 which is the amount of Village funds affected by the fraudulent activity. On November 10, 2014 the Village withdrew substantially all of its remaining funds invested in IMET.
IMET has made a number of disclosures concerning this incident which can be found by click below:
IMET has advised the Village that it intends to recover the funds. The Village will closely monitor the funds recovery process and will consider additional options in the event IMET is unable to do so. Until this matter is resolved, the Village will not have access to the $902,000.
Because of Carol Stream’s strong financial position, the loss of access to these funds will have no immediate impact on Village operations or service delivery.
Recoveries from IMET Losses Begin
On February 9, 2015, the Village received the first reimbursement from the liquidating trust established by IMET which will administer recoveries from the First Farmers fraud case. Total proceeds received from this first distribution totaled $15,719. While small in comparison to the Village’s total at-risk funds of $902,000, this is the beginning of what will likely be a very long recovery process. The court appointed receiver in this case is in possession of sizeable assets of the defendant, many of which are in the process of being liquidated. We are advised that more significant distributions will take place in the coming months. We will post additional information on recoveries as they occur.
Summary of IMET Loss Recoveries
|Date||Amount||Cumulative Recoveries||% Recovered|