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Seven years after Bridgeport bank collapse amid massive scheme, prosecutions persist, as do questions

Of all the questions lingering since the collapse of a storied Bridgeport bank almost exactly seven years ago, perhaps the biggest that federal authorities have been unwilling, or unable, to answer is this: Where’s the missing money?

More than $82 million is still unaccounted for following the discovery of a major embezzlement scheme in late 2017 at the century-old Washington Federal Bank for Savings, and the sudden death of its president, CEO and largest shareholder, John F. Gembara. The bank executive was found dead with a rope around his neck in a customer’s Park Ridge home as regulators were bearing down.

Was some of the money sent to the Cayman Islands, as has been asserted in court by Robert Kowalski, a longtime Gembara friend sentenced to 25 years for embezzling $7.2 million from the bank?

Or was it spirited off to Poland, where three of the convicted embezzlers are originally from?

Authorities won’t comment, and many of those being investigated are mum or plead ignorance.

Sixteen people have since been charged in the case, with one of the central figures, Marek Matczuk, hit with a nearly 13-year prison sentence on Dec. 16 after he was found guilty of embezzling almost $6 million from the bank. Matczuk has been ordered to pay back that amount to the Federal Deposit Insurance Corp., the government banking regulator that’s out all that cash.

Marek Matczuk, shown at the federal courthouse in Chicago.

Ashlee Rezin / Sun-Times

Matczuk, who owns the home where Gembara was found dead in what police and pathologists say was a suicide, was the latest sent off to prison but likely not the last — seven others who pleaded guilty in the scheme haven’t been sentenced because they are cooperating with the federal investigation.

Who's who in the Washington Federal saga

Who’s who in the Washington Federal saga

Rosallie C. Corvite: Former Washington Federal CFO, pleaded guilty in 2022 to falsifying bank documents. Awaits sentencing.

James R. Crotty: Washington Federal vice president was fired seven months before the bank closed, pleaded guilty in 2022 to falsifying documents. Cooperating with federal authorities, he’s yet to sentenced.

Brian Fong: Ran Washington Federal’s main office on Archer Avenue. He was charged with falsifying bank records and obstructing bank regulators, but signed a deferred prosecution agreement, agreeing to cooperate with federal prosecutors who later dismissed the charges.

John F. Gembara: Top Washington Federal executive, involved in multimillion-dollar embezzlement scheme, found dead in Park Ridge home Dec. 3, 2017 in what was ruled by local police and pathologists as a suicide, but that some suspect was a murder. He’d been the latest generation of his family to run the century-old Bridgeport bank founded for the Polish community.

Therese Gembara: Wife of John F. Gembara and a Washington Federal employee at the time of the bank collapse. Not charged in the criminal case. Sold Palos Hills home that had been remodeled by contractors involved in embezzling money from the bank. She told Palos Hills police in 2012 that her husband was engaged in “illegal activity.”

Barbara Glusak: One-time chief financial officer of Washington Federal, she wrote a letter to the U.S. attorney’s office in 2011 alerting them to bank records being falsified, and separately alerted the bank board. But nothing happened at the time, and she resigned. Not charged in the case, and cooperating with authorities.

Edward H. Gobbo: A nephew of late mob-connected Chicago police figure William Hanhardt, he is not charged in bank case but under federal investigation. Got millions in loans from Washington Federal after emerging from bankruptcy, and he or his immediate family owed more than $3.8 million on 27 residential loans at the time the bank went bust.

Jane Iriondo: Bank corporate secretary pleaded guilty in 2022 to falsifying documents. Not yet sentenced.

Boguslaw Kasprowicz: Former contractor, home builder pleaded guilty in 2022 to helping embezzle $14.3 million from the bank, also cheating on his taxes. Owns home in Burbank, Calif. His son is a Hollywood actor. Awaiting sentencing.

Jan Kowalski: Attorney who once unsuccessfully ran for Cook County clerk, pleaded guilty to helping conceal $375,000 in assets from her brother Robert M. Kowalski’s bankruptcy case, which listed the FDIC as biggest creditor. Sentenced to 37 months in prison, she’s slated for release in March.

Robert M. Kowalski: Attorney, longtime friend of John F. Gembara, serving a 25-year prison sentence for embezzling $8 million from Washington Federal. He has long contended that Gembara was murdered, and that missing bank money was spirited away to another country. He’s slated for release from prison in 2043.

William A. Kowalski: Brother of Jan and Robert M. Kowakski, he’s a contractor who was charged with conspiracy to defraud the United States, though he entered into a deferred prosecution agreement, cooperated with federal investigators and the criminal charges against him were dropped. Owes the federal government $190,000 in restitution.

George Kozdemba: Retired Metropolitan Water Reclamation District manager who spent 20 years on the bank board. He was sentenced to a year and a day in prison after pleading guilty to falsifying records to fool financial regulators. He’s slated for release from custody in April.

Miroslaw Krezja: Contractor found guilty in 2023 of embezzling $2.6 million from the bank. He is awaiting sentencing.

William M. Mahon: Once a high-ranking official in Chicago’s Department of Streets and Sanitation and member of the Daley family’s political organization. A board member of the bank for 16 years, he’s pleaded guilty to falsifying documents so regulators wouldn’t know the bank loaned money to customers under suspicious circumstances. Sentenced to 18 months in prison, he’s slated for release in May.

Alicia Mandujano: Bank loan servicer, pleaded guilty in 2022 to falsifying documents. Hasn’t yet been sentenced.

Marek Matczuk: Handyman, Polish immigrant nicknamed “Shrek.” Alternately described as friend of John F. Gembara and his bodyguard. Gembara was found dead in his Park Ridge home, which was and remains in foreclosure. Convicted in September 2023 of embezzling $6 million from the bank. Sentenced to nearly 13 years in prison.

Martha Padilla: Ex-wife of Robert M. Kowalski and one-time 25th Ward aldermanic candidate. Not charged, cut a deal with the FDIC allowing her to keep some property she acquired in her divorce.

Lester Stepien: The comptroller of a meatpacking company who served on the bank board until it was shuttered. Not charged, cooperating with federal authorities.

Patrick Daley Thompson: Grandson and nephew of two former Chicago mayors, he served in the City Council representing the Bridgeport area when he was charged with lying to regulators about the $219,000 he owed the bank and for cheating on his income taxes. Sentenced to four years in prison, he’s done his time and is now a registered lobbyist at City Hall. His law license is suspended until March.

Cathy Torres: Washington Federal loan processor, pleaded guilty in 2022 to falsifying documents. Awaits sentencing.

Janice Weston: John F. Gembara’s sister who served as senior vice president and board member of bank, she was sentenced to three months in prison for repeatedly altering records to keep regulators from discovering problems at the bank. She’s already been released from custody.

They include Boguslaw Kasprowicz, a former contractor who pleaded guilty in 2022 to helping embezzle $14.3 million from the bank, and cheating on his taxes. With him, investigators have an idea of where the money landed.

According to his plea agreement, Kasprowicz used money embezzled from the bank to pay off Gembara’s credit card bills and personal loans that were used in part to pay for the purchase of a yacht named Expelliarmus after a spell in the Harry Potter books.

Kasprowicz used some of the money to buy a home in suburban Los Angeles and to pay for his son to study acting at the University of Southern California. Prosecutors say Kasprowicz also sent hundreds of thousands of dollars to two other children in Poland, one of them a doctor.

Kasprowicz, who built homes in Bucktown and Wicker Park financed by Gembara’s bank, got $14.3 million from the bank in construction loans between 2009 and 2017 — loans Kasprowicz and his Thomas Development company never intended to repay, not even after the homes were sold, authorities say.

Boguslaw Kasprowicz (right) got more than $14 million in crooked construction loans from Washington Federal Bank for Savings to build homes in Bucktown and Wicker Park between 2009 and 2017 — loans prosecutors said never were meant to have to be repaid.

Pat Nabong / Sun-Times

Under Gembara, bank money was siphoned in creative ways, authorities believe — loans that were given without expectation that they would be paid back, no-collateral loans and then cooked books to cover tracks.

It’s unclear when Gembara began looting the bank his family ran for three generations. Some sources believe it started after he replaced his father as the bank president and CEO in 1997. But federal authorities say the scheme was well underway when he replaced his father as the bank chairman in 2005.

Which leads to another unanswered question: Why?

Was sheer greed behind the scheme, or were other factors in play — was Gembara, for instance, being muscled into the plot?

What we know about the Washington Federal saga

What we know about the Washington Federal saga

Washington Federal’s onetime president and CEO, John F. Gembara.

Provided photo


1913: Founded by Polish immigrants in Bridgeport to cater to their families and friends, the savings and loan association was long run by the Gembara family which renamed it Washington Federal Bank for Savings.

1997: Emil Gembara retires as the bank’s president and CEO, giving the jobs to his son John, who had been working as an auto mechanic.

1999: William Mahon, a longtime Daley family ally and member of their 11th Ward Regular Democratic Organization, is given permission by City Hall, where he’s employed, to join the board of Washington Federal.

2005: Emil Gembara, chairman of Washington Federal, dies.

2009: Bank employee James Crotty is said to have alerted Janice Weston, Emil Gembara’s daughter, of questionable loans being made. She is a board member and executive at Washington Federal and a sister to then-bank president and CEO John F. Gembara.

2011: Barbara Glusak, the chief financial officer of Washington Federal, writes to the U.S. attorney’s office alerting them to financial irregularities under Gembara. Glusak’s letter is passed to the FBI, but nothing happens. She also alerts members of the bank board, to no avail, and resigns.

2012: Gembara’s wife goes to police in Palos Hills where they live, saying her husband was involved in “illegal activity,” but it’s unclear what if anything happens from there.

May 2017: Crotty is fired from Washington Federal, reportedly for stealing money designated for stamps.

Oct. 26, 2017: State elections records show Washington gives an unsecured $80,000 loan to the 11th Ward Democrats under then-Ald. Patrick Daley Thompson, a nephew of former Mayor Richard M. Daley. Thompson also had personal loans from the bank.

Oct. 30, 2017: Tipped to financial irregularities, federal regulators begin an audit of Washington Federal.

Nov. 29, 2017: As federal regulators learn Gembara and his employees may have been involved in a “loan fraud scheme,” Washington Federal’s board suspends him.

Dec. 1, 2017: Gembara reportedly meets handyman and associate Marek Matczuk at a never-completed home Matczuk is building with a loan from Gembara’s bank. They are said to have left Gembara’s car and driven in Matczuk’s vehicle to his Park Ridge home where Gembara was told he could stay.

Dec. 2, 2017: Matczuk’s teenage son drives with Gembara to a nearby Home Depot in Niles to buy green rope that Matczuk later told authorities Gembara had said was for hanging Christmas decorations at his southwest suburban home.

Dec. 3, 2017: Gembara is found dead inside Matczuk’s home, sitting in a chair with the same rope around his neck in a bedroom.

Dec. 15, 2017: Federal regulators shut down Washington Federal for what’s described as “unsafe or unsound practices.” It was later determined Gembara had given out millions of dollars to certain favored customers without an expectation that it’d be paid back. The Federal Deposit Insurance Corp. ends up spending $140 million to cover the bank’s losses and reimburse legitimate customers.

Some of Gembara's family and friends believe he didn’t kill himself but instead was murdered. There was discussion at some point of exhuming Gembara’s body, but that apparently never happened.

Matczuk alluded to that theory at his recent sentencing hearing, saying, “When that man took his own life, he raised his hand against himself at my house. At that time, a party for my children was taking place. The thought that I wanted to finish off that guy or that I was OK with him finishing himself in my house is not true.”

READ THE ORIGINAL SUN-TIMES INVESTIGATION

READ THE ORIGINAL SUN-TIMES INVESTIGATION

Read the first story in the Sun-Times investigation of the failed Bridgeport bank Washington Federal Bank for Savings, published March 4, 2018.

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