Financial ripples from the fall of Opportunities Industrialization Center of Greater Milwaukee are spreading to its bankers, former vendors and ex-employees.

One lender, North Milwaukee State Bank, has filed a foreclosure action against OIC and one of its affiliates over two large mortgages the bank made in 2000 and 2003. OIC is the failed social welfare agency entangled in a criminal kickback scheme that funneled some $500,000 to former state Sen. Gary R. George.

OIC formally shuts down Monday, and agency leaders are considering declaring bankruptcy.

The money woes are likely to linger.

The North Milwaukee loans, totaling some $1.6 million, far exceeded the value of the properties they were written for, a review of local property records shows. In its foreclosure lawsuit, the bank says it is still owed $800,000 on the loans one piece of OIC's mounting multimillion-dollar deficit.

The bank's president, Linda Stewart, also sat on OIC's board of directors when a loan for $827,539 was written on Nov. 21, 2003, for the Garfield Foundation, a for-profit OIC affiliate under which OIC's properties are titled. Three properties with a combined value of less than $250,000 were listed on the mortgage.

North Milwaukee also lent Garfield $750,000 on May 16, 2000, on two properties valued together at about $380,000, according to the bank's lawsuit and city property records.

Garfield, though incorporated separately, had tight links to OIC. For example, Carl Gee, the longtime president and chief executive of OIC, also was chairman of the Garfield board of directors. Garfield is being dissolved as part of a plea deal on federal obstruction charges. Both Garfield and OIC are listed as defendants in the foreclosure case.

Gee left OIC last year after he was charged in the kickback case. On Friday, he began serving a two-year federal prison term. George, who also was convicted in the scheme, is serving a four-year prison term.

Stewart did not return phone calls seeking comment on the case. Benjamin Payne, the bank's lawyer, said bank officials had ordered him not to discuss it.

The properties named in the bank's foreclosure case, all commercial buildings on Milwaukee's north side, are for sale, as are all of OIC's other property and assets.