Washington Federal Bank investigation

Coverage of the Washington Federal Bank for Savings in Bridgeport failure and the federal investigation into the now-shuttered bank.

Amy Gembara’s ex-boyfriend was convicted this week in the 2021 killing of her fiancee. Amy’s father, John Gembara, the late CEO and president of Washington Federal Bank for Savings in Bridgeport, was found dead in 2017, shortly before the bank failed.
Mustafaa Saleh admitted he secretly bought county-owned homes and resold them for a profit. He was convicted of fraud involving the county agency.
Customers who trusted the crooked bank to do the right thing are still out up to $312,000 each, as the latest story in the Sun-Times investigative series shows.
Jan Kowalski pleaded guilty last year to concealing assets from a bankruptcy trustee. She helped her brother, Robert Kowalski, hide more than $357,000 while representing him as an attorney in bankruptcy court.
The failure of Washington Federal Bank for Savings has led to criminal charges against 16 people. Among them: former Ald. Patrick Daley Thompson, who was convicted last year of lying to regulators and filing false income-tax returns.
Brian Fong is cooperating with prosecutors. Fifteen bank officials, workers and borrowers have been charged, and a Daley family member was convicted of cheating on his taxes in a related case.
He was a longtime friend, customer and business partner of John F. Gembara, the Washington Federal Bank for Savings’ CEO authorities say oversaw a massive embezzlement scheme.
The former Chicago City Council member from Bridgeport offered a glimpse Wednesday of his life behind bars as he fought to keep from having his license to practice law suspended for three years.