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He stayed on at City Hall for a month after being charged. His boss Cole Stallard got a mortgage from Washington Federal Bank for Savings while Mahon was on the bank board.
Federal prosecutors have indicted four more people tied to the failed Chicago bank.
Police consent decree monitor Maggie Hickey and chef Kevin Hickey are dealing with their late father’s losses from Washington Federal Bank for Savings’s shutdown.
Brian Ernst / Sun-Times A former video store three blocks south of the Chicago Ridge police station, revived as a video gaming bar, has gotten caught up in two federal criminal investigations in the past three years. As Terry Ferguson and his son Timothy Ferguson were working on converting the shuttered video store into a bar, he already was the target of a sting operation in which a federal agent bought guns from a food truck owned by Ferguson, who also had been peddling cocaine. Ferguson’s arrest in October 2018 ultimately led to the end of his son’s dream of opening the bar.
Washington Federal Bank for Savings, 2869 S. Archer Ave., was shut down in December 2017 for “unsafe or unsound practices” days after its president and chief executive officer, John F. Gembara, was found dead at a bank customer’s home. A federal audit uncovered an $82.6 million fraud at the bank. Google street view In the summer of 2017, a Chicago accounting firm with political connections gave Washington Federal Bank for Savings in Bridgeport a clean bill of health in the yearly audit required by federal bank regulators. They ultimately found more than $82 million in suspicious loans ...