Barbara Glusak, who was Washington Federal Bank for Savings' chief financial officer, kept sounding the alarm about falsified loan records, court records show. But no one heeded the warning, allowing an embezzlement scheme at the bank to continue for six more years.
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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.
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.
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.