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CHICAGO - A former attorney was sentenced to 25 years in federal prison on Tuesday for his involvement in an embezzlement scheme that led to the collapse of Washington Federal Bank for Savings.
Robert Kowalski, 62, was convicted last year on charges of embezzlement, bankruptcy fraud, and tax fraud. In addition to his prison sentence, Kowalski has been ordered to pay $7.2 million to the Federal Deposit Insurance Corporation (FDIC) and over $400,000 to the Internal Revenue Service (IRS).
The sentencing comes after the 2017 closure of the bank, which was based in Chicago's Bridgeport neighborhood. The Office of the Comptroller of the Currency determined that the bank was bankrupt, with at least $66 million in nonperforming loans, leading to its shutdown.
Kowalski, along with two real estate developers, received funds from the bank without proper documentation. These funds were falsely recorded as loan disbursements in the bank's records, and Kowalski was never required to repay the money.
The investigation into the bank's collapse resulted in charges against 16 individuals, including the bank's chief financial officer, treasurer, and other employees. Four were convicted, while ten pleaded guilty.
Kowalski's sister, Jan Kowalski, who was also an attorney, pleaded guilty and received a 2.5-year prison sentence for fraudulently helping her brother hide more than $350,000 from creditors and bankruptcy trustees.