Feds find large rascal during shuttered Bridgeport bank whose prez was found passed – Chicago Sun

A century-old Bridgeport bank that federal regulators close down final December — reduction than dual weeks after a boss was found hanged in a customer’s home — had been concerned in a large rascal intrigue that surfaced $82.6 million, a sovereign review has found.

That’s about 30 percent some-more than what authorities estimated when they sealed a clout-heavy bank.

The audit by a U.S. Treasury Department’s investigator general creates transparent that sovereign authorities trust officials during Washington Federal Bank for Savings intent in a large fraud, arising residential and blurb loans that have never been repaid.

And a review says sovereign regulators are partly obliged for a waste given they treated Washington Federal “as a ‘training’ or ‘practice’ bank” for rookie examiners who unsuccessful to detect a scheme, ignoring “red flags” and being burned by bank officials including boss John F. Gembara given during slightest 2011.

Gembara, 56, a grandson of a bank’s founder, was found passed final Dec. 3, sitting in a chair with a wire around his neck inside a Park Ridge bedroom of a bank patron who due a bank scarcely $1.8 million and was confronting foreclosure. It was 25 miles from his home in Palos Hills.

Gembara’s genocide has been ruled a self-murder by Park Ridge military and a Cook County medical examiner’s office.

The bank’s disaster is underneath review by a FBI and by a Federal Deposit Insurance Corp., a sovereign group that regulates financial institutions.

The FDIC is perplexing to collect a delinquent loans, that embody as most as $27 million it’s seeking from Robert M. Kowalski, an profession and developer who has been sealed adult for days during a Metropolitan Correctional Center in a Loop for unwell to spin over annals to a FDIC as partial of his disaster case.

Robert M. Kowalski.

Criminal invulnerability attorneys have been defended by a former bank house members — Gembara’s sister Janice M. Weston; George F. Kozdemba, a late electrical technician for a Metropolitan Water Reclamation District of Greater Chicago; William M. Mahon, a emissary commissioner for a Chicago Department of Streets and Sanitation; and Leonard Stepien, administrator of a make-up company. None returned messages seeking comment.

Gembara’s mother Therese Gembara also has hired an attorney, Luke Casson, who told a Chicago Sun-Times progressing this year that a widow doesn’t trust her father killed himself. Kowalski also formerly told a journal he thinks somebody killed a bank president.

The sovereign review released this week doesn’t discuss Gembara’s death. It also doesn’t brand any of a bank officials.

But it does prominence a array of conflicts of seductiveness involving bank officials and house members who authorized loans and afterwards had slip of a loans they had made.

Washington Federal had finished loans to residential and blurb business though supposing a value of a skill until a week to 6 months after a loans were made, a review found.

That’s among countless “red flags” ignored by fresh bank examiners for a sovereign Office of a Comptroller of a Currency, that insincere regulatory government over a bank in 2011.

“We identified weaknesses in a execution of a OCC’s organisation of a bank that led to missed opportunities for timely coercion actions associated to a bank’s loan portfolio,” a review says. “We trust that had a OCC hearing teams identified and addressed these issues timely, a rascal during Washington Federal might have been unclosed progressing and a detriment to a [deposit word fund] and particular criticism holders might have been reduced.”

The OCC detected a rascal — as good as a trashy slip by a OCC bank examiners — final fall.

It’s misleading what stirred a OCC to control that audit. Casson formerly told a Sun-Times it was a outcome of a tip from someone inside a bank.

The OCC incited a commentary over to a FDIC, that changed to close down a bank.

Gembara apparently was wakeful of that movement several days before he died.

The Park Ridge home of a Washington Federal Bank for Savings patron where bank arch John F. Gembara was found dead. The homeowner told military in a northwest suburb that Gembara pronounced he “needed to censor due to ‘troubles’ during a bank.” | Kevin Tanaka / Sun-Times

Washington Federal was one of 8 banks in a United States that unsuccessful in 2017, according to a FDIC, that says waste are lonesome by banks nationwide.

Since a Chicago bank’s forced closing, a deposits have been insincere by Royal Savings Bank, that took over Washington Federal’s categorical bureau during 2869 S. Archer Ave. and a sole bend during 1410 W. Taylor St. in Little Italy.

During a hearing final fall, a bank examiners looked during a representation of 9 loans and were told by bank officials that 5 of a loans had been paid off.

“They requested additional information about a paid-off loans, though had problem receiving information from a bank,” a news says. An OCC central “instructed a [examiner in charge] to surprise a bank’s boss that a examiners would not leave a bank until a bank supposing a requested information.”

“In Nov 2017, OCC examiners met with a bank’s Board of Directors to communicate poignant concerns identified during a examination, including a disaster of a bank to yield requested papers and loan files. After a meeting, a member of a bank’s management, who was also a house member, suggested OCC examiners that there was a vital rascal occurring during a bank. [The partner emissary comptroller] told us that if before examiners would have approved that a loans a bank reported as paid-off were indeed paid-off, a rascal would have been unclosed sooner.”

“We trust that a use of scantily supervised fresh examiners significantly contributed to a disaster of OCC to timely brand Washington Federal’s deficiencies,” a review says.

During those progressing examinations, a OCC employees unsuccessful to plea a bank to furnish annals to uncover that loans had indeed been repaid, a news says: “An investigator told us that they trust that a bank is giving them a finish and accurate loan hearing change and accept a loan hearing change in good faith unless there is reason to doubt it.”

The auditors pronounced they had to manually review Washington Federal’s annals given a bank’s computerized government information complement couldn’t furnish annals such as a news on loans that had been extended or renewed or even “a news detailing a volume of investor-owned genuine estate and owner-occupied 1-4 family mortgages.”

Washington Federal specialized in residential loans, mostly to business like Kowalski who bought homes they would franchise to tenants who had sovereign housing vouchers.

Shortly before Gembara’s death, a bank lent $80,000 to a 11th Ward Regular Democratic Organization that’s headed by Cook County Commissioner John Daley and Ald. Patrick Daley Thompson (11th), Daley’s nephew. The income was to correct and rehabilitate a domestic organization’s building during 3659 S. Halsted St., a alderman told a Sun-Times progressing this year.

Cook County Commissioner John P. Daley. | Rich Hein / Sun-Times

The bank had longstanding domestic connectors in Bridgeport. Mahon, one of a house members, is a brother-in-law of Patrick Huels, a former 11th Ward alderman who quiescent after holding a loan from Michael Tadin, a trucking kingpin who has finished a happening operative for City Hall. Mahon lives a retard from John Daley in a three-story home built with loans from Washington Federal.

Mahon started operative during City Hall in 1989, using festivals for Mayor Richard M. Daley, according to his LinkedIn profile. As a high-ranking Streets and San official, Mahon has been partial of a group that over Mayor Rahm Emanuel’s devise to emanate a grid-based complement to collect residential garbage, finale a aged ward-by-ward complement that existed for generations.

William M. Mahon. | Facebook

The FDIC is suing Washington Federal’s outward accountants, Bansley Kiener, a clout-heavy Rosemont organisation that has finished a lot of work for City Hall. The organisation has audited each one of a tax-increment financing districts combined by Daley, as good as Taste of Chicago.

Bansley Kiener has contributed roughly $20,000 over a years to a debate supports of Daley family members, including $600 to their 11th Ward classification in Mar 2017 and another $600 in Oct 2017, and it gave $300 to Thompson in June, annals show. 

The group has subpoenaed Washington Federal annals from Bansley Kiener, though a accounting organisation has refused to obey them, arguing that a summons is “overly extended and burdensome” and seeks annals a organisation believes are confidential.

But a FDIC says in a lawsuit: “Bansley Kiener lacks any government for a position that it can review federally insured financial institutions and afterwards secrete any record of a review work. BK approved usually months before to a bank’s disaster that a resources were giveaway of element misstatement. Yet scarcely half of a resources of a bank were created off as meaningless underneath 6 months later.”

The review also criticizes Bansley Kiener, observant a organisation did yearly audits of Washington Federal between 2011 and 2016 “and never reported any issues with a bank’s loan hearing balance.”

Robert Hannigan, a accounting firm’s handling partner, didn’t lapse messages seeking comment.

Robert Hannigan, handling partner of Washington Federal’s outward accountants. | Bansley Kiener

READ MORE

• Why did Bridgeport bank boss kill himself in customer’s Park Ridge home? March 4, 2018

• After Bridgeport landowner kills himself, tip debtor tries to equivocate repaying $20M, April 8, 2018

Treasury Department Audit of Washington Federal Bank for Savings (OIG-19-009)… Nov. 6, 2018 by The Watchdogs on Scribd

More zoo ...

Posted in
Tagged . Bookmark the permalink.
short link zookitchen.com/?p=20960.