A former high-ranking City Hall official with close ties to the Daley family’s political organization pleaded guilty Monday in the collapse of Bridgeport’s Washington Federal Bank for Savings, which federal regulators shut down in 2017 over a massive embezzlement scheme involving its CEO.
William M. Mahon — who served on the bank board while working as a deputy commissioner of the city of Chicago Department of Streets and Sanitation — admitted he falsified loan documents so banking regulators would think the board was properly overseeing John F. Gembara, the bank’s CEO, president, chairman of the board and chief shareholder.
