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Today: Jun 13, 2024

City official sentenced to prison for multimillion-dollar embezzlement, causing bank collapse.

1 min read

TLDR:

A former city official has been sentenced to 18 months in prison for his role in concealing a multimillion-dollar embezzlement scheme that led to the collapse of Washington Federal Bank for Savings in Chicago’s Bridgeport neighborhood. William Mahon, 57, pleaded guilty to conspiring to falsify bank records and received a $130,000 payment from then-bank President John Gembara to use as a down payment on a loan. Mahon, who was a deputy commissioner in the Streets and Sanitation Department, also admitted to underreporting income on his tax returns. Mahon’s attorney argued for probation, stating that his client was a bit player who trusted Gembara. U.S. District Judge Virginia Kendall disagreed, sentencing Mahon to prison and ordering him to pay a $75,000 fine.

 

 

 

Key Points:

     

  • A former city official has been sentenced to 18 months in prison for concealing an embezzlement scheme.
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  • William Mahon pleaded guilty to falsifying bank records and receiving a payment to use as a loan down payment.
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  • Mahon’s attorney argued for probation, stating that his client was a minor player who trusted the main perpetrator.
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  • U.S. District Judge Virginia Kendall disagreed, sentencing Mahon to prison and ordering him to pay a fine.

 

A former high-ranking city official was sentenced to 18 months in prison Wednesday for helping to conceal a multiyear embezzlement scheme that led to the failure of Washington Federal Bank for Savings, a family-run institution that had been a mainstay in Chicago’s Bridgeport neighborhood for more than a century. William Mahon, 57, pleaded guilty last year to conspiring to falsify bank records to deceive federal regulators and help hide millions in collateral-free loans authorized by then-bank President John Gembara that prosecutors alleged had essentially turned Washington Federal into a piggy bank for insiders and friends.