Peterson sues JP Morgan Chase over frozen credit line

Drew Peterson, accused of killing his third wife, sued JP Morgan Chase in federal court late Monday, accusing the bank of illegally cutting off a sizable home equity credit line.

The suit claims in May 2005 Peterson received a home equity credit line from Chase for $220,000. The credit line -- which the former Bolingbrook cop now wants to use to post part of his bond, pay his attorneys and hire expert witnesses -- was suspended by the bank in May 2009.

The bank cited “imprisonment” as the cause of the suspension, the suit said.

“If he doesn’t get the money and his assets are frozen he’ll have to petition the court to allow him to use tax money to be able to hire all these expensive expert witnesses,” said Walter Maksym, who is representing Peterson in the suit.

“Taxpayers are already paying for the prosecution. He’s up against he might of the state and now his major asset is not accessible to him.”

Maksym said Peterson’s annual income of nearly $109,000 is more than he was earning when he applied for the credit line.

Peterson is currently receiving $6,067.71 monthly from his Bolingbrook police pension and $2,758 monthly from Social Security, the suit said.

The suit claims Chase violated the truth-in-lending act, breached its contract with Peterson and violated the Illinois Consumer Fraud and Deceptive Business Practices Act, among other charges. The suit is asking for the home equity line of credit and damages if credit is not restored.

“They’ve slandered his credit” so Peterson can’t get credit from another bank, Maksym said. “If he gets convicted because they can’t get his assets they [Chase] might be on the hook for that.”

A Chase spokesperson declined to comment.

Peterson is being held on a $20 million bond set in Will County on charges that he killed his third wife, Kathleen Savio, in 2004. Peterson’s fourth wife, Stacy Peterson, has been missing since October 2007.

Maksym said using your home’s equity as bond is part of the reason to have a home equity credit line.

“Remember ‘Goodfellas’ when Lorraine Bracco puts up her mother’s house for Ray Liotta?” he said. “It’s a classic thing.”