A month after Edward H. Gobbo got out of bankruptcy, Washington Federal Bank for Savings CEO John F. Gembara starting giving him millions more in loans, records show. When the bank went bust, Gobbo or his immediate family owed over $3.8 million on 27 residential loans, some years overdue.
These Washington Federal Bank for Savings customers had no idea the high interest rates that attracted them were feeding the fraud. The bank’s “smooth operators” lured them in, the daughter of one victim says.
Two real estate developers were convicted last week of participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.
Matczuk, who said he did odd jobs for Washington Federal Bank for Savings and its employees, was given the money on orders of the late bank chief John F. Gembara.
Three Board Members of Failed Washington Federal Bank in Chicago Guilty of Falsifying Records and Obstructing Regulators thesouthlandjournal.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thesouthlandjournal.com Daily Mail and Mail on Sunday newspapers.