They have been accused of aiding in forging paperwork and different actions that helped the bank’s greatest buyer, Robert Kowalski, who’s already been indicted and charged with embezzling at the least $29 million in bank funds together with high-ranking bank executives, together with CEO John Gembara. Kowalski filed for chapter safety and has instructed the Chicago Solar-Instances he repaid a few of his loans, however the bank didn’t report the repayments.
Gembara died by suicide in December 2017, simply earlier than the bank was closed by federal regulators, in accordance with the Cook dinner County Medical Examiner’s workplace.
The bank, began by Gembara’s grandfather, was low-profile however well-known in Bridgeport, the long-time residence of the Daley household. Ald. Patrick Daley Thompson was a borrower; William Mahon, a Daley precinct captain who has a senior place on the Division of Streets and Sanitation, served on the board.
Its demise was a shock as a result of the bank hadn’t posted a single loan loss in a few years earlier than its sudden closure. Even one of the best banks undergo some loan losses, in order that was a pink flag looking back. The obvious fraud was so large that the Federal Deposit Insurance coverage Corp.’s estimated hit to its insurance coverage fund at the moment is $87 million.
Washington Federal had simply $140 million in property when it failed.
U.S. Lawyer John Lausch in right now’s announcement mentioned the felony probe into the bank and its prospects is ongoing.