More defendants have been added to an ongoing prosecution in which several key stakeholders managed to tank a Chicago bank by embezzling millions in funds. The Washington Federal Bank for Savings failed in 2017 after the Office of the Comptroller determined that the bank was insolvent. Four new defendants have been added to the case for the theft of over $23 million in bank money. Do they face the same sorts of penalties as those who rob banks by force? No. In this article, we will discuss the charges they are likely to face.
Why Was the Bank Shut Down?
The bank was shut down after the Office of the Comptroller determined that the bank had $66 million in nonperforming loans. What is a nonperforming loan? Essentially, it is a loan in which the borrower has not made a payment in some time. Hence, the loan has been in default for a while. It is believed that the executives, including the CFO and treasurer, floated themselves major loans and transferred bank funds without the required documentation. Those who were on the receiving end of these funds are facing charges. Those who were in charge of overseeing the bank funds are also facing charges. Those who falsified bank records to ensure that the embezzlement was not discovered are also facing charges.