Orland Park Woman Charged With Conspiracy In Bank Scandal: Feds

ORLAND PARK, IL — An Orland Park woman is facing conspiracy charges after federal authorities said she attempted to falsify bank records while serving as a board member for the now-closed Washington Federal Bank for Savings in Chicago.

The bank was closed in December 2017 with at least $66 million in unpaid loans, according to the Office of the Comptroller of the Currency. Prior to its closing, ten employees were accused of conspiring with an Illinois attorney to embezzle money from the bank.

In an expanded indictment, a federal grand jury added four new defendants to the charges, including Janice Weston, 63, of Orland Park. In total, the indictment names 14 Washington Federal employees or connected parties.

Along with Weston, William Mahon, of Chicago, and George Kozdemba, of Fort Myers, Florida, were charged with conspiracy to falsify bank records and deceive and obstruct the OCC.

Federal authorities said they were first made aware of the conspiracy while evaluating Washington Federal's loan portfolio prior to its closing. Weston and the other employees are accused of making false entries in bank records and turning them over to the OCC in order to interfere with the investigation during that time, the indictment states.

A Tinley Park man is also named in the indictment from prior charges. James Crotty, of Tinley Park, is accused of making false documentation in Washington Federal's records to cover up insider loans to Mahon. Crotty would alter appraisals for properties owned by Mahon, use them as collateral against Washington Federal mortgages, and inflate appraisal values for the property, authorities said in a news release.

Arraignments have not yet been scheduled for the group.