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According to a report, funds obtained through fraud from a defunct bank may have been utilized to pay off debts totaling more than $1 million at casinos in the Chicago area of Illinois.
The information has been sourced from a recent report by the Chicago Sun Times.
In 2017, a Bridgeport, IL bank was closed after it was discovered that it had distributed at least $31 million in fraudulent loans. However, federal prosecutors were unable to track the whereabouts or usage of the loan funds.
Marek Matczuk faces charges related to the fraudulent loans issued by Washington Federal Bank for Savings. Federal prosecutors are investigating whether the funds Matczuk obtained from Washington Federal were used to cover his substantial gambling debts.
Matczuk, aged 59, resided in Park Ridge as a real estate contractor and handyman. Following the closure of Washington Federal, CEO John F. Gembara was discovered deceased by hanging in Matczuk’s residence. Federal authorities revealed that Matczuk had outstanding loans from the bank amounting to $13 million.
Washington Federal’s fraudulent loan scheme
The bank offered loans without requiring documentation, collateral, or repayment plans to certain individuals who were considered insiders in the scheme. Washington Federal was involved in providing these deceitful loans.
Matczuk was accused of embezzling $6 million from Washington Federal as part of the loan scheme.
Matczuk was an avid gambler at Illinois casinos
According to the Chicago Sun Times, Matczuk reportedly lost a significant amount of money as a result of his gambling addiction, with an estimated total of over $982,000 lost between 2011 and 2018.
Federal prosecutors suspect that Matczuk may have used the funds he received from Washington Federal to finance his gambling habits. However, Matczuk’s attorney, Lawrence Hyman, argues that there is no evidence suggesting that his client did not use his earnings from his contracting work to repay his gambling debts. Hyman stated to the Sun-Times:
It would be inaccurate to assume that the profits and losses from the casino boats were connected in any way to the losses from the bank. They were completely unrelated. He has been a hardworking contractor for years, constructing homes and holding steady employment. His income could have originated from various sources.
The Chicago Sun Times reports that if prosecutors can demonstrate that the casinos knew Matczuk was using funds from Washington Federal to cover his losses, the money may be able to be recovered.
Matzcuk was confirmed to have received more than $2.8 million in unsecured loans from the bank between 2013 and 2017, according to prosecutors. At the time of the bank’s closure, Matzcuk still had five mortgages on his primary residence and three other properties.
The backstory of Washington Federal’s crooked dealings
The inception of Washington Federal dates back to 2013, initially catering to Polish immigrants residing in Chicago’s South Side. The Gembara family managed the bank for generations until John assumed the role of CEO.
According to the Federal Deposit Insurance Corp. (FDIC), as of June, Washington Federal had 2,379 depositors who were not covered by insurance. The bank also held approximately $1.4 million in uninsured deposits.
Additionally, the FDIC has already disbursed approximately $90 million to cover the bank’s insured deposits, though the amount of money recovered remains uncertain.
Matczuk, along with 13 others, has been charged in connection with the federal investigation into the bank. Among those charged is former 11th Ward Alderperson Patrick Daley-Thompson, who was sentenced to prison for falsifying his income taxes and misleading regulators about loans he received from Washington Federal.
In Matczuk’s case, there are 11 co-defendants, including Robert Kowalski, Boguslaw Kasprowicz, Miroslaw Krejza, five former bank workers, and three former board members. All individuals are accused of assisting Gembara in his embezzlement plot.
Some of the funds went towards property tax payments for Matczuk, Kowalski, Kasprowicz, and Krejza. Additionally, it is believed that Matczuk used the money to settle credit card debts and buy a high-end yacht.
According to prosecutors, Washington Federal’s illicit activities started in 2004 or possibly even earlier. Bank employees are accused of concealing the misconduct by inaccurately completing bank documents in order to avoid detection by regulators.
Gembara’s mysterious death
The CEO of Washington Federal was suspended by the bank board on November 28, 2017. Matczuk alleges that he received phone calls from Gembara on December 1, during which Gembara mentioned that he was in trouble with his bank and needed a place to stay.
They met and car-pooled to Matczuk’s Park Ridge residence. The next day, Matczuk’s son mentioned that he had driven Gembara to a store so he could purchase rope for hanging Christmas decorations at the ex-bank CEO’s Palos Hills home.
On December 3rd, the Matczuk family discovered Gembara’s body hanging in a bedroom. The Cook County medical examiner’s office ruled the death as suicide, despite the absence of a note. Gembara’s wife found a text from him simply saying “Bye,” prompting her to question the examiner’s conclusion.
A report issued on Dec. 5 disclosed that Matczuk and his wife had a $13.2 million debt to Washington Federal, with $11.6 million being classified as a complete loss.
