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William Mahon, who served under Richard M. Daley, Rahm Emanuel and Lori Lightfoot, served on the board of the crooked Chicago bank.
A month after Edward H. Gobbo got out of bankruptcy, Washington Federal Bank for Savings CEO John F. Gembara starting giving him millions more in loans, records show. When the bank went bust, Gobbo or his immediate family owed over $3.8 million on 27 residential loans, some years overdue.
These Washington Federal Bank for Savings customers had no idea the high interest rates that attracted them were feeding the fraud. The bank’s “smooth operators” lured them in, the daughter of one victim says.
Matczuk, who said he did odd jobs for Washington Federal Bank for Savings and its employees, was given the money on orders of the late bank chief John F. Gembara.
William M. Mahon was a high-ranking City Hall official under three former mayors and had close ties to the Daley family’s political organization.