Feds going after investors in firm tied to Daley son
BY TIM NOVAK Staff Reporter tnovak@suntimes.com May 21, 2012 1:02AM
Between 2002 and 2009, Patrick Daley (shown in May) was paid more than $1.2 million by Cardinal Growth L.P. and its general partner, Cardinal Growth LLC. | Brian Jackson~Sun-Times
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Updated: June 29, 2012 9:08AM
Hoping to recover $24.1 million in taxpayers’ money that was invested with a troubled venture capital firm involving former Mayor Richard M. Daley’s son, federal authorities have given 34 private investors a choice: Pay up, or end up in court. “This is money down a rat hole,” says one investor, who has to come up with the remaining $60,000 he originally promised to invest in Cardinal Growth, which the U.S. Small Business Administration seized last June. Cardinal Growth — founded and operated by Chicago businessmen Robert J. Bobb and Joseph McInerney — raised money from private investors and obtained another $24.1 million in SBA loans to buy up businesses.
“Patrick gets paid, and the investors don’t? That’s a big disconnect,” says one investor who says the SBA is after him to come up with nearly $100,000, which he agreed to invest but never did.
