A real estate developer has been sentenced in a Chicago federal court to over six years of imprisonment. Miroslaw Krejza was involved in a scheme that embezzled millions from the now-defunct Washington Federal Bank for Savings, located in Chicago's Bridgeport area.
Washington Federal ceased operations in 2017 after being declared insolvent by the Office of the Comptroller of the Currency, with at least $66 million in nonperforming loans. For a decade, Krejza was part of a conspiracy that disguised embezzled funds as real estate loan disbursements. These funds, provided to Krejza and others, were never repaid.
In 2023, a federal jury convicted the 67-year-old Krejza from Chicago of conspiring to embezzle funds and falsify bank records. U.S. District Judge Virginia M. Kendall handed down a sentence of six years and eight months, along with restitution exceeding $2 million.
This case was brought to light by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, alongside several special agents from various federal agencies including the FDIC's Office of Inspector General, the FBI, and the IRS Criminal Investigation in Chicago. Assistance was provided by the U.S. Trustee Program, with representation from Assistant U.S. Attorneys and a Special Assistant U.S. Attorney.
The collapse of Washington Federal drew criminal charges against 16 individuals, including key bank personnel who conspired to embezzle more than $31 million. Trials led to the conviction of Krejza and three others, while others pleaded guilty or entered deferred prosecution agreements.
Significant sums from the embezzled funds were transferred to individuals such as Chicago attorney Robert M. Kowalski and real estate developer Marek Matczuk, often bypassing necessary documentation. Kowalski was convicted of multiple charges and sentenced to 25 years, while Matczuk received nearly 13 years for his role in the conspiracy.
Jan R. Kowalski, Robert Kowalski’s sister and an attorney, admitted to helping conceal $357,000 during her brother’s bankruptcy and was sentenced to over three years.
Additionally, former board members of Washington Federal admitted guilt in a conspiracy to falsify bank records. Sentences were handed down to William M. Mahon, George F. Kozdemba, and Janice M. Weston, ranging from three months to 18 months in prison.
