Three former board members of the failed Washington Federal Bank for Savings in Chicago have pleaded guilty to falsifying records and obstructing regulators.
William M. Mahon, 56, of Chicago, and George F. Kozdemba, 73, of Fort Myers, Florida, pleaded guilty to a conspiracy charge on Monday. Last week, Janice M. Weston, 65, of Orland Park, also pleaded guilty.SUBSCRIBE TO FOX 32 CHICAGO ON YOUTUBE
Mahon, Kozdemba, and Weston were board members of Washington Federal Bank, which was closed in 2017 due to insolvency and nonperforming loans. Prosecutors say the bank's Chief Financial Officer, Treasurer, and other employees were also charged in a scheme to embezzle $31 million in bank funds. Several defendants have pleaded guilty or cooperated with the government.
During a review of Washington Federal's loan portfolio, prosecutors say Mahon, Weston, Kozdemba and others falsified bank records to deceive the Office of the Comptroller of the Currency and obstruct its examination. They were accused of creating false entries to appear compliant with banking rules and internal policies.
Sentencings for Weston, Mahon and Kozdemba are scheduled for October 20, December 11, and December 12. The conspiracy charge carries up to five years in federal prison, and Mahon's additional tax offense could get him up to three years in prison.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US government offices close in DC due to severe storm threatU.S. government offices in the Washington area closed early on Monday due to a severe storm threat and tornado watch that was disrupting air travel. The National Weather Service said the Washington, D.C., area was under a tornado watch until 9 p.m. ET (0100 GMT Tuesday) with significant threats of locally destructive straight-line winds. Libraries, museums, the National Zoo, pools and other municipal and federal services in the Washington area were also closing early. The U.S.
Read more »
Chicago White Sox await word on MLB discipline for brawlOnly a few hours after a brawl in Saturday’s game between the Chicago White Sox and the Cleveland Guardians, the teams returned to Progressive Field where the Sox staged a ninth-inning rally, scoring three runs with two outs for a 5-3 victory.
Read more »
Chicago shootings: At least 25 shot, 6 fatally, in weekend violence across city, police sayThe shootings included one involving Chicago police and another that left an 8-year-old girl dead.
Read more »