John F. Gembara, the late president and CEO of a failed Bridgeport bank who was found dead in a customer’s bedroom five years ago, took center stage Tuesday as federal prosecutors described an elaborate embezzlement scheme they said caused the shutdown of Washington Federal Bank for Savings.
Some of those homeowners didn’t know that their mortgages remained on the books until they were contacted by banking regulators after Washington Federal was closed.
“John didn’t start out to be a bad man, but he started embezzling with a man who buried money in the Cayman Islands,” Kowalski told the jury. “The government doesn’t want to tell you about the Cayman Islands. There’s a clear trail of this money going to the Cayman Islands. He is the pink elephant in the room. He buried a lot of money.”
“I wasn’t doing anything illegal,” Kowalski told the jury. “I’m a builder. The problem was Mr. Gembara.” Kowalski also is charged with bankruptcy fraud, accused of failing to disclose all of his assets when he filed for bankruptcy protection soon after the bank was shut down as federal regulators began seizing real estate in an effort to recover as much as possible of the $90 million the Federal Deposit Insurance Corporation had to pay to cover the bank’s initial losses.
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Chicago attorney on trial in Bridgeport bank failure represents himself, begins with talk of a ‘pink elephant,’ dead bank CEOChicago attorney and real estate developer Robert Kowalski gave an opening statement on his own behalf in his federal fraud trial for alleged embezzlement that preceded the failure of Washington Federal Bank in Bridgeport.
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Embezzlement trial could spill new secrets about Bridgeport bank linked to Patrick Daley ThompsonOne year since Ald. Patrick Daley Thompson (11th) was convicted of cheating on his income taxes in a case involving clout-heavy Washington Federal Bank for Savings, another trial is about to get underway that holds the promise of revealing more secrets about the Bridgeport bank.
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3 dead, 5 injured in Michigan State shooting; gunman found deadMichigan State Police sent out in a tweet that there was a report of shots fired on the campus of Michigan State University Monday night.
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Michigan State University shooting leaves 3 dead, 5 wounded; suspect dead from self-inflicted gunshot woundThree people were killed when a gunman opened fire inside an academic hall at Michigan State University on Monday evening, according to police.
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3 dead, 5 injured in shooting at Michigan State University; suspect deadMichigan State University police say at least three people have been killed and five others injured in a shooting on campus.
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