Loren-Maltese fighting home auction

September 23, 2010 1:56:52 PM PDT
Former Cicero town president Betty Loren-Maltese is fighting to keep her home. A judge had been scheduled to auction her house Thursday but postponed it. Loren-Maltese's attorneys have filed court papers seeking to have her conviction overturned.

If it is overturned, the government cannot auction off the home.

Loren-Maltese served 6 1/2 years in prison for fleecing taxpayers of more than $12 million in a mob-related insurance scam. Part of the sentence called for her to pay restitution.

In court papers filed Tuesday, her lawyers said she believes she will get her conviction overturned because there was no evidence at trial she received kickbacks or bribes.

In a response Wednesday, the U.S. attorney's office argued the record shows Loren-Maltese profited from the conspiracy. Prosecutors say canceling the auction scheduled for Thursday would waste money spent in preparing for the sale.

U.S. District Judge John Grady gave her attorneys two weeks to file papers seeking to overturn her conviction.

The Associated Press contributed to this report.


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