Chicago's Bridgeport bank failure

Robert M. Kowalski enters the Dirksen Federal Courthouse wearing a zipped up jacket over a flannel shirt.

Dead CEO of failed Bridgeport bank in the spotlight as embezzlement trial begins

John F. Gembara, the late boss of Washington Federal Bank for Savings, schemed with attorney Robert M. Kowalski, prosecutors told jurors Tuesday. Representing himself, Kowalski blamed Gembara.

By Tim Novak

Embezzlement trial could spill new secrets about Bridgeport bank linked to Patrick Daley Thompson

By Jon Seidel and Tim Novak

Marek Matczuk walks out of the Dirksen Federal Courthouse after a court appearance last year.

The Watchdogs

Key figure accused of embezzling from failed Bridgeport bank lost $1 million at casinos, sources say

Authorities are trying to determine whether the money Marek Matczuk lost gambling came from the millions he never repaid Washington Federal Bank for Savings.

By Tim Novak and Robert Herguth

Former Ald. Patrick Daley Thompson (11th) walks out of the Dirksen Federal Courthouse after being sentenced July 6 to four months in federal prison.

Washington Federal Bank investigation

Former Ald. Patrick Daley Thompson reports to prison in Wisconsin

The disgraced Bridgeport pol — a member of the city’s best-known political family — was found guilty in February of two counts of lying to regulators and five counts of filing false income tax returns.

By Emmanuel Camarillo

Patrick Daley Thompson

Patrick Daley Thompson sentenced to 4 months in federal prison

The sentencing capped a stunning, mad-dash of a federal court case that in 14 months cost Thompson his 11th Ward seat on the City Council, his law license and his freedom. It likely ended his political career and marred not only his reputation, but his famous family’s.

By Jon Seidel

Patrick Daley Thompson

Patrick Daley Thompson’s sentencing Wednesday could see member of Daley dynasty face prison

“Everything we have worked for our entire lives has been depleted — financially, reputationally and even what we thought were solid friendships,” Thompson’s wife, Katie, wrote to the judge.

By Jon Seidel

Boguslaw Kasprowicz (right) at a court appearance in March 2021.

The Watchdogs

Failure of clout-heavy Bridgeport bank sees a crooked contractor plead guilty, agree to help feds

Boguslaw Kasprowicz pleaded guilty to charges stemming from the failure of Washington Federal Bank for Savings — the investigation that also ensnared ex-Ald. Patrick Daley Thompson.

By Tim Novak

Washington Federal Bank for Savings, 2869 S. Archer Ave., before it was shut down in December 2017 for “unsafe or unsound practices” days after CEO John F. Gembara was found dead at a bank customer’s home in what authorities called a suicide.

New revelations in Bridgeport bank failure case: CEO’s wife told police of ‘illegal activity’ 5 years before shutdown

By Tim Novak and Robert Herguth

Washington Federal Bank investigation

Exec of failed Bridgeport bank pleads guilty in fraud case that ensnared ex-Ald. Patrick Daley Thompson

Rosalie Corvite is cooperating with federal authorities in their continuing investigation of the failure of clout-heavy Washington Federal Bank for Savings.

By Tim Novak

Washington Federal Bank investigation

2 more guilty pleas expected in massive embezzlement at Washington Federal Bank in Bridgeport

The change of pleas come as the federal investigation into the $66 million embezzlement scheme continues.

By Mitch Dudek

Jane Tran Iriondo walks inside the Dirksen Federal Building on March 4, 2021, when she and nine others were arraigned in a case involving Bridgeport’s failed Washington Federal Bank for Savings.

Washington Federal Bank investigation

Another ex-Bridgeport bank worker pleads guilty, suggested fudging docs ‘with scissors and copier’

Jane Iriondo is now the fourth person to plead guilty in connection with the $66 million embezzlement scheme at Washington Federal Bank for Savings. The bank was central to the trial of Patrick Daley Thompson.

By Jon Seidel and Tim Novak

Former Ald. Patrick Daley Thompson was the first Daley family member to face trial and the first sitting Chicago Council member to do so in more than two decades. He was convicted on all counts Feb. 14 in his trial for income tax fraud and lying to federal regulators about money he got from a failed Bridgeport bank, Washington Federal Bank for Savings.

The Watchdogs

Desperate for loans, Patrick Daley Thompson put hundreds of thousands in campaign cash in crooked Bridgeport bank

Documents subpoenaed by prosecutors and other public records reflect a growing desperation as he tried to quadruple the amount of money he was borrowing from Washington Federal Bank for Savings.

By Tim Novak and Jon Seidel

James Crotty walks out of the Dirksen Federal Courthouse on March 4, 2021.

Washington Federal Bank investigation

Ex-VP of failed Bridgeport bank at center of Patrick Daley Thompson trial pleads guilty

James Crotty admitted helping embezzle $66 million from from Washington Federal Bank for Savings by falsifying records and lying to regulators. He’s cooperating with prosecutors.

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Ald. Patrick Daley Thompson guilty on all counts

Jurors took about three-and-a-half hours to find Thompson guilty of two counts of lying to regulators and five counts of filing false federal income tax returns. State law requires Thompson to resign his seat on the City Council.

By Jon Seidel, Tim Novak, and 2 more

Columnists

Patrick Daley Thompson singled himself out for federal prosecution

He should have known he shouldn’t be playing in certain sandboxes. Washington Federal Bank for Savings was such a sandbox, a playpen for scoundrels.

By Mark Brown

Patrick Daley Thompson

Patrick Daley Thompson faced other tax trouble before Monday’s conviction

His guilty verdict for claiming deductions for interest he never paid to a failed Bridgeport bank, Washington Federal Bank for Savings, isn’t the only time he’s had trouble with the IRS.

By Tim Novak

Patrick Daley Thompson

Jurors deliberating in trial of Ald. Patrick Daley Thompson

A federal prosecutor told the jury that “no one is so big, no one is so important, that they can’t be held accountable for their criminal conduct.”

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Closings Monday in Ald. Patrick Daley Thompson trial — then jurors have their say

The case revolves around $219,000 Thompson got from the now-shuttered Washington Federal Bank for Savings. His attorneys filed a motion late Thursday hoping to convince the judge to acquit Thompson on two counts, but the judge declined.

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Will Ald. Patrick Daley Thompson testify? Lawyer says he’s ‘leaning against’ it

The final call comes after three days of testimony. Prosecutors laid out their evidence that Thompson lied to regulators about the $219,000 he owed Washington Federal Bank for Savings, and that he knew he improperly claimed mortgage-interest deductions on his tax returns for the years 2013 through 2017.

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Accountant takes center stage at Ald. Patrick Daley Thompson’s trial, gets in trouble himself

Someone overheard Robert Hannigan talking to two upcoming witnesses — in violation of a court order — during a lunch break while Thompson’s friends and family were seen nearby. Hannigan allegedly called his cross-examination “just a game of gotcha.”

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Patrick Daley Thompson picked up checks in Bridgeport bank president’s office, worker testifies

Alicia Mandujano said the bank president told her to let Thompson into the bank before business hours so he could pick up the first payment. She said Thompson also picked up the second and third payment in the president’s office, which was on the second, non-public floor of the bank.

By Jon Seidel and Tim Novak

Patrick Daley Thompson

Jurors picked, opening statements next in the trial of Ald. Patrick Daley Thompson

He’s charged with filing false federal income tax returns for 2013-2017 and lying to regulators about how much he owed Washington Federal Bank for Savings in Bridgeport.

By Jon Seidel and Tim Novak

A Daley goes on trial, writing a new chapter in Chicago history

By Tim Novak and Jon Seidel

Cathy Torres walks out of the Dirksen Federal Courthouse on March 4, 2021.

Washington Federal Bank investigation

Another potential witness against Ald. Patrick Daley Thompson pleads guilty

Cathy Torres’ name appears on a list of potential prosecution witnesses for Thompson’s federal tax trial, which is set for Feb. 4. The feds say Torres communicated with Thompson about his loan at Washington Federal and attempts to refinance there.

By Jon Seidel

Washington Federal Bank investigation

Man admits helping embezzle $190K to buy boat named after Harry Potter spell

William A. Kowalski struck a two-year deal with federal prosecutors known as a deferred-prosecution agreement in the case involving a Bridgeport bank. If he holds up his end of the bargain, prosecutors are expected to dismiss the charges.

By Jon Seidel

Washington Federal Bank investigation

Patrick Daley Thompson can show jurors his amended tax returns, judge rules

U.S. District Judge Franklin Valderrama made the ruling at a hearing Friday, where it appeared Thompson’s trial is on track to begin Feb. 4.

By Jon Seidel

Patrick Daley Thompson arrives at the Laborers Intl. Union Hall 3841 S. Halsted. Tuesday, April 7, 2015.

City Hall

Bridgeport bank president had worker falsely make it look like Patrick Daley Thompson made loan payments: plea

That worker, Alicia Mandujano, has become the first person to plead guilty as a result of the massive investigation that has swirled for years since the failure of Washington Federal Bank for Savings and the death of its president, John Gembara, both in 2017.

By Jon Seidel and Tim Novak

City Hall

Patrick Daley Thompson accountant says he found note that could undermine alderman’s defense

The revelation came at a hearing Monday as Thompson is scheduled to go to trial Feb. 4. But the judge raised concerns about moving forward amid the COVID surge.

By Jon Seidel

Attorney Robert Kowalski is at the center of a failed Bridgeport bank and has deep ties to City Hall. He’s seen here leaving the Dirksen Federal Building in March.

The Watchdogs

Attorney at center of Bridgeport bank case has long ties to City Hall, powerful players

Robert M. Kowalski is accused of embezzling at least $31 million from Washington Federal Bank for Savings, which operated in the Daley family political fiefdom for generations.

By Tim Novak

Marek Matczuk walks out of the Dirksen Federal Courthouse March 4 after being charged with embezzling millions of dollars from Washington Federal Bank for Savings.

The Watchdogs

Dead CEO of failed Bridgeport bank worried over his safety, sister told feds

In a sealed deposition, Janice Gembara Weston said John Gembara began bringing Marek Matczuk to the bank’s annual board meeting after the ouster of a board member.

By Tim Novak and Robert Herguth