Robert Vanecko: Still on the Scene

By Kevin Robinson in News on Aug 11, 2009 2:40PM

Robert Vanecko, the mayor's nephew who's use of city pension funds for real estate investments is now under federal investigation, is moving forward with a planned development in the South Loop. According to the Sun-Times, DV Urban Reality, the real estate investment firm run by Vanecko and Daley ally Allison Davis, are moving forward with plans to demolish the Chicago Letter Carrier's union building to construct a 220-unit apartment building. The letter carriers will move to a new building at 38th and Wabash.

The Vanecko-Daley kerfuffle started back in March when the city's Inspector General opened an investigation into how Vanecko got five city pension funds to invest nearly $70 million in a scheme to redevelop South side real estate. Since then Vanecko has said that he's left the firm, although neither DV Urban Reality nor the city pension funds involved in the scandal would confirm if he has, in fact, left. What's more, according to documents subpoenaed by a federal grand jury, Vanecko will only be investing $3.5 million of his own money, half of what he originally promised pension fund heads. That's because DV Urban Reality renegotiated their deal with the city pension funds, allowing not only the halved investment by Vanecko, but also an extra year to invest the funds and the ability to collect as much as $8 million in management fees.