One of the highest-ranking officials accused in a massive embezzlement scheme at the Bridgeport bank crucial to former Ald. Patrick Daley Thompson’s tax trial pleaded guilty Thursday to a conspiracy charge.
James Crotty, 42, could face up to five years in prison for his role in the scheme at Washington Federal Bank for Savings, where he rose from branch manager to vice president.
But Crotty agreed Thursday to cooperate with federal prosecutors, which could earn him a break when he is sentenced.
A federal jury convicted Thompson last week of cheating on his taxes and lying to federal regulators.
His trial centered on payments totaling $219,000 he received from Washington Federal between 2011 and 2014. He made one re-payment and paid no interest but falsely claimed mortgage-interest deductions on his tax returns for the years 2013 through 2017.
Fifteen people have been charged in connection with the investigation bank, including Thompson and now Crotty, who is the third to plead guilty.
Crotty admitted he helped embezzle $66 million from the bank by falsifying records to cover it up.
Crotty created false appraisals and lied to regulators, even altering the font on a record to make it more difficult to read, according to his 26-page plea agreement.
Crotty was fired in May 2017 from the bank, which was shut down seven months later, in December 2017.
That was days after John F. Gembara — its president, chief executive officer and major shareholder — was found dead in the $1 million Park Ridge home of bank customer Marek Matczuk. The death was ruled a suicide, though Gembara relatives and friends have questioned that.
Matczuk also has been charged and is awaiting trial. Gembara has been implicated in what federal regulators described as a massive fraud scheme.
Former bank employee Alicia Mandujano pleaded guilty last month before testifying against Thompson, telling jurors he picked up his payments from the bank at Gembara’s office.
A third former bank employee, Cathy M. Torres, also has pleaded guilty.
