TLDR:
Former City Hall insider William Mahon has been sentenced to 18 months in jail for his involvement in the collapse of the crooked Bridgeport bank, Washington Federal Bank for Savings. Mahon admitted to falsifying bank records during his time on the bank’s board. The bank, which closed in December 2017, was the center of a massive embezzlement scheme, resulting in indictments for 16 individuals. Mahon is the first bank official or employee to be sentenced in the scheme.
Key points:
- Former City Hall insider William Mahon has been sentenced to 18 months in jail for his role in the crooked Bridgeport bank scandal.
- Mahon admitted to falsifying bank records during his time on the board of Washington Federal Bank for Savings.
- The bank closed in December 2017 after being involved in a massive embezzlement scheme.
- Mahon is the first bank official or employee to be sentenced in connection to the scheme.
A former high-ranking aide to three Chicago mayors, William Mahon, has been sentenced to 18 months in prison and fined $75,000 for his involvement in the collapse of the crooked Bridgeport bank, Washington Federal Bank for Savings. Mahon, who grew up near the family of the late Mayor Richard J. Daley, is one of 16 individuals who have been indicted for what federal officials have called “a massive embezzlement scheme” at the bank.
The bank was closed 12 days after its CEO, John Gembara, was found dead with a rope around his neck. Mahon is the first bank official or employee to be sentenced in the scheme. Former Ald. Patrick Daley Thompson, the grandson of Mayor Daley, has already served his prison sentence for lying to federal regulators about his debt to the bank. Jan Kowalski, whose two brothers have also been indicted in the bank collapse, is currently serving time for helping to hide money for one of her brothers.
The Federal Deposit Insurance Corp. (FDIC) has spent almost $139.8 million to cover the bank’s losses, but only $59 million has been recovered from insurance policies and other banks that purchased the bank’s loans. The FDIC is still missing $83 million. Mahon worked for the Department of Streets and Sanitation for over 30 years, serving under Mayors Richard M. Daley, Rahm Emanuel, and Lori Lightfoot. He was a member of the bank’s board of directors for 16 years until the bank closed.
