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From: "Adam H. Kerman" <ahk@chinet.com>
Newsgroups: rec.arts.tv
Subject: Re: Lessons from one of the biggest bank frauds ever
Date: Fri, 17 May 2024 18:52:41 -0000 (UTC)
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Adam H. Kerman <ahk@chinet.com> wrote:

>I really don't know if this story made national news. It was a major
>local news story for years, mostly because the story would never end.

>Washington Federal Bank for Savings, a thrift (savings and loan),
>committed bank fraud requiring FDIC to cover $140 million in losses, an
>amazing amount of money for a tiny institution.

>Basically, the president of the bank authorized loans to friends that
>were not expected to be repaid. His relatives were on the board of
>directors, and employees were making outstanding loans as repaid.

>One of the recipients of a "loan" was Patrick Daley Thompson. He's in
>prison. He was an alderman and nephew of Mayor Richard M. Daley. Mayor
>Daley was never stupid enough to take bribes.

>In 2011, the CFO, not a relative of the bank president, while doing her
>job, noticed that there was a significant balance on a loan owned by a
>friend of the president that bank employees had marked "paid" in
>documents presented to an auditor.

>The CFO immediately notified two of the bank's five board members, one
>of whom was the sister of the president. She ducked speaking to the CFO
>that day and the following day. The CFO then quit on the following day.

The sister has been sentenced to several months.

Sister of crooked Bridgeport bank's CEO sentenced to 3 months in prison
for her role in bank's collapse
In handing down the sentence, U.S. District Judge Virginia Kendall told
Janice Weston, "It's very troubling. You have a few moments in time
where you knew it was illegal and you could have left."
By Tim Novak
Chicago Sun-Times
May 16, 2024, 6:19pm CDT
https://chicago.suntimes.com/the-watchdogs/2024/05/16/bridgeport-bank-failure-janice-weston-sentencing-washington-federal-bank-savings-embezzlement

>. . .