A federal judge in Chicago has sentenced Marek Matczuk, a real estate developer from Park Ridge, Illinois, to nearly 13 years in prison for his role in embezzling millions from the failed Washington Federal Bank for Savings. The bank, located in Chicago's Bridgeport neighborhood, was shut down in 2017 after being declared insolvent with at least $66 million in nonperforming loans.
Matczuk was part of a long-running conspiracy that disguised embezzled funds as real estate development loan disbursements. These loans were never repaid. Last year, a jury found Matczuk guilty of conspiring to commit embezzlement and falsifying bank records, along with aiding and abetting bank employees' embezzlement activities. U.S. District Judge Virginia M. Kendall sentenced him to 12 years and eleven months and ordered restitution exceeding $5.9 million.
The announcement came from Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, along with several special agents from various inspector general offices and other federal agencies. The prosecution team included Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.
The investigation into Washington Federal's collapse resulted in criminal charges against 16 individuals including high-ranking bank employees who conspired to embezzle at least $31 million. While some defendants pleaded guilty or entered deferred prosecution agreements, Matczuk and three others were convicted by jury trials.
Significant portions of the stolen funds were transferred without proper documentation to individuals outside the bank including Chicago attorney Robert M. Kowalski who was sentenced to 25 years for bankruptcy fraud and related charges by Judge Kendall last August.
Kowalski's sister Jan R. Kowalski also faced legal repercussions; she received over three years for helping conceal assets during her brother's bankruptcy case.
Former board members William M. Mahon, George F. Kozdemba, and Janice M. Weston admitted guilt regarding falsifying records to deceive regulators from the Office of the Comptroller of the Currency (OCC) receiving sentences ranging from three months to eighteen months each.
Additionally convicted was Patrick D. Thompson on counts related to false statements made about money he received from Washington Federal which led to a four-month sentence.