"William Mahon, 57, pleaded guilty last year to conspiring to falsify bank records to deceive federal regulators and hide millions in collateral-free loans authorized by then-bank President John Gembara that had essentially turned Washington Federal into a piggy bank for insiders and friends. As part of the scheme, Mahon concealed a $130,000 payment he received directly from Gembara to use as a down payment on a loan to build a three-flat in Bridgeport, records show."
"Mahon, who was the $139,000-a-year deputy commissioner of the Streets and Sanitation Department when he was charged in 2021, also admitted in a plea agreement he underreported income on his tax returns for years that cost the IRS more than $60,000. In asking for probation, Mahon's attorney, Thomas Breen, said Mahon was a bit player in the bank scheme and didn't participate or benefit directly from the embezzlement itself."
William Mahon, 57, pleaded guilty to conspiring to falsify bank records to deceive federal regulators and hide millions in collateral-free loans that turned Washington Federal into an insiders' piggy bank. Mahon concealed a $130,000 payment from bank president John Gembara used as a down payment on a Bridgeport property. Mahon served as deputy commissioner of Streets and Sanitation and admitted underreporting income, costing the IRS over $60,000. Mahon's attorney described him as a minor participant who trusted Gembara and lacked banking experience. Gembara killed himself in December 2017 as regulators prepared to take over. A judge rejected Mahon's claimed inexperience and imposed an 18-month prison sentence.
Read at Chicago Tribune
Unable to calculate read time
Collection
[
|
...
]