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The Latest Breaking News from Washington Federal

Client of crooked Bridgeport bank got out of $4 million owed by going bankrupt, then got millions more in loans

A month after Edward H. Gobbo got out of bankruptcy, Washington Federal Bank for Savings CEO John F. Gembara starting giving him loans of millions, records show. When the bank went bust, Gobbo or his immediate family owed more than $3.8 million on 27 residential loans, some of them years…

Chicago Sun-Times

Crooked Bridgeport bank used these people’s CDs to fuel embezzlement scheme — ‘We were all victims’

Washington Federal Bank for Savings customers had no idea the high interest rates that attracted them were feeding the fraud. The bank’s “smooth operators” lured them in, the daughter of one victim says.

Chicago Sun-Times

Bridgeport bank failure fallout: Ex-city official, second man plead guilty in collapse of Washington Federal Bank for Savings

William M. Mahon was a high-ranking City Hall official under three former mayors and had close ties to the Daley family’s political organization.

Chicago Sun-Times

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Bridgeport bank failure fallout: Dead CEO’s sister pleads guilty in collapse of Washington Federal Bank for Savings

Over seven years, Janice Weston, vice president of the board of the clout-heavy bank, ordered bank employees to fool federal regulators by backdating loan documents.

Chicago Sun-Times

Ex-Washington Federal bank employee cuts deal with feds, expected to testify

The failure of Washington Federal Bank for Savings has led to criminal charges against 16 people. Among them: former Ald. Patrick Daley Thompson, who was convicted lst year of lying to regulators and filing false income-tax returns.

Chicago Sun-Times

Washington Federal Bank for Savings collapse sees another former employee charged

Brian Fong is cooperating with prosecutors. Fifteen bank officials, workers and borrowers have been charged, and a Daley family was convicted of cheating on his taxes in a related case.

Chicago Sun-Times

Bridgeport bank failure cost millions more than feds have said: Where did all the money go?

Authorities say they’ve recovered $59 million toward the money lost when they shut down Washington Federal Bank for Savings, but they’re still out another $81 million, records show.

Chicago Sun-Times

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Bridgeport bank failure case verdict: Robert M. Kowalski guilty of all charges

He was a longtime friend, customer and business partner of John F. Gembara, the Washington Federal Bank for Savings’ CEO authorities say oversaw a massive embezzlement scheme.

Chicago Sun-Times

Patrick Daley Thompson denies wrongdoing despite conviction, says he never wanted to be mayor, wants to ‘rebuild my life’

Ex-Chicago City Council member didn’t testify when he was convicted of cheating on income taxes and lying about how much money he got from a crooked Bridgeport bank. Now, trying to get back his law license, he makes his case.

Chicago Sun-Times

Patrick Daley Thompson on prison life: ‘It was horrible, absolutely horrible’

The former Chicago City Council member from Bridgeport offered a glimpse Wednesday of his life behind bars as he fought to keep from having his license to practice law suspended for three years.

Chicago Sun-Times

Dead Bridgeport banker routinely hid bad loans from federal regulators, trial shows

Washington Federal Bank for Savings failure trial lays bare how CEO John F. Gembara told employees to conceal delinquent loans for millions owed by ‘friends of John.’

Chicago Sun-Times

The latest in the failed Bridgeport bank trial, City Council elections and more in your Chicago news roundup

Today’s update is a 5-minute read that will brief you on the day’s biggest stories.

Chicago Sun-Times

Dead CEO of failed Bridgeport bank in the spotlight as embezzlement trial begins

John F. Gembara, the late boss of Washington Federal Bank for Savings, schemed with attorney Robert M. Kowalski, prosecutors told jurors Tuesday. Representing himself, Kowalski blamed Gembara.

Chicago Sun-Times

Will Bridgeport bank failure trial reveal more secrets about clout bank linked to Patrick Daley Thompson?

Washington Federal Bank for Savings’ failure was at the periphery of Thompson’s trial but will be centerstage when Robert M. Kowalski, who got millions of dollars in loans the feds say didn’t have to be repaid, goes on trial Monday.

Chicago Sun-Times

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Chicago Sun-Times

The latest in the Washington Federal saga, rising natural gas prices and more in your Chicago news roundup

Today’s update is a 5-minute read that will brief you on the day’s biggest stories.

Chicago Sun-Times

Key figure accused of embezzling from failed Bridgeport bank lost $1 million at casinos, sources say

Authorities are trying to determine whether the money Marek Matczuk lost gambling came from the millions he never repaid Washington Federal Bank for Savings.

Chicago Sun-Times

Former Ald. Patrick Daley Thompson reports to prison in Wisconsin

The disgraced Bridgeport pol — a member of the city’s best-known political family — was found guilty in February of two counts of lying to regulators and five counts of filing false income tax returns.

Chicago Sun-Times

A member of Chicago’s Daley dynasty faces possible prison time in federal court Wednesday

A jury convicted ex-Ald. Patrick Daley Thompson in February of cheating on his taxes and lying to regulators. He is the grandson of the late Mayor Richard J. Daley and the nephew of former Mayor Richard M. Daley.

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Chicago Sun-Times

Failure of clout-heavy Bridgeport bank sees a crooked contractor plead guilty, agree to help feds

Boguslaw Kasprowicz pleaded guilty to charges stemming from the failure of Washington Federal Bank for Savings — the investigation that also ensnared ex-Ald. Patrick Daley Thompson.

Chicago Sun-Times

Prison or probation? Feds ask judge to sentence Daley dynasty’s Patrick Daley Thompson to two years behind bars

Thompson asked the judge to give him probation instead. The two sides made their recommendations Monday ahead of Thompson’s sentencing before U.S. District Judge Franklin Valderrama, which is set for July 6.

Chicago Sun-Times

New revelations in Bridgeport bank failure case: CEO’s wife told police of ‘illegal activity’ 5 years before shutdown

Five years before Washington Federal Bank for Savings was ordered closed because of massive fraud, CEO John F. Gembara’s wife told police she planned to call the FBI on her husband, newly obtained records show.

Chicago Sun-Times

Exec of failed Bridgeport bank pleads guilty in fraud case that ensnared ex-Ald. Patrick Daley Thompson

Rosalie Corvite is cooperating with federal authorities in their continuing investigation of the failure of clout-heavy Washington Federal Bank for Savings.

Chicago Sun-Times

Another ex-Bridgeport bank worker pleads guilty, suggested fudging docs ‘with scissors and copier’

Jane Iriondo is now the fourth person to plead guilty in connection with the $66 million embezzlement scheme at Washington Federal Bank for Savings. The bank was central to the trial of Patrick Daley Thompson.

Chicago Sun-Times

Desperate for loans, Patrick Daley Thompson put hundreds of thousands in campaign cash in crooked Bridgeport bank

Documents subpoenaed by prosecutors and other public records reflect a growing desperation as he tried to quadruple the amount of money he was borrowing from Washington Federal Bank for Savings.

Chicago Sun-Times

Onetime vice president of bank at center of Patrick Daley Thompson trial pleads guilty

James Crotty was fired from Washington Federal Bank for Savings in May 2017. The bank was shut down seven months later in December 2017. That happened just days after its president, John F. Gembara, was found dead in the $1 million Park Ridge home of a bank customer.

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