Indicted: A top official in Mayor Lori Lightfoot’s Department of Streets and Sanitation
William M. Mahon, who was once suspended for helping rig city job applicants’ test scores, now faces charges over his role as a Washington Federal Bank for Savings board member.
William M. Mahon is accused in an 82-page indictment made public Wednesday of being part of a years-long embezzlement scheme as a longtime member of the Washington Federal Bank for Savings board of directors.
Altogether, 15 people have now been charged.
Mahon, 55, is newly charged along with three others, including two who also were board members of the bank, which authorities shut down in December 2017 over what they said was an embezzlement scheme involving the bank’s president that siphoned off $90 million.
Failing to tell regulators about a $130,000 personal loan he obtained from then-bank president and chief executive officer John F. Gembara and Gembara’s wife. The loan has never been repaid, a source said.
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Mahon — who, as the $138,800-a-year deputy commissioner for quality control and accountability, is one of the highest-ranking officials in the Department of Streets and Sanitation — couldn’t be reached for comment.
On Dec. 3, 2017, days before federal regulators shut down the bank, Gembara was found dead in the bedroom of a bank customer’s million-dollar Park Ridge home, seated in a chair with a rope wrapped around his neck and the rail of a staircase.
https://chicago.suntimes.com/2021/12/8/22822511/bridgeport-bank-failure-william-mahon-washington-federal-bank-savings-indictment
Dead CEO of failed Bridgeport bank worried over his safety, sister told feds
She said in a now-sealed deposition that her brother began bringing Marek Matczuk, a hulking contractor nicknamed Shrek, to the bank’s annual board meeting, which Mazurkiewicz continued to attend even after being dumped.
So far, 11 people have been indicted in the continuing investigation of the bank’s collapse, including Matczuk, 58, and Ald. Patrick Daley Thompson (11th), who’s facing tax charges. Matczuk is charged with embezzling more than $6 million.
https://chicago.suntimes.com/2021/6/11/22528077/failed-bridgeport-washington-federal-bank-savings-gembara-janice-weston-marek-matzuk-mazurkiewicz