James Crotty was fired from Washington Federal Bank for Savings in May 2017. The bank was shut down seven months later in December 2017. That happened just days after its president, John F. Gembara, was found dead in the $1 million Park Ridge home of a bank customer.
One of the highest-ranking officials accused in a massive embezzlement scheme at the Bridgeport bank crucial to ex-Ald. Patrick Daley Thompson’s tax trial pleaded guilty Thursday to a conspiracy charge.
James Crotty, 42, could face up to five years in prison for his role in the scheme at Washington Federal Bank for Savings, where he rose from branch manager to vice president. However, Crotty also agreed Thursday to cooperate with federal prosecutors, a move that could earn him a break when he is sentenced.
A federal jury convicted Thompson last week of cheating on his taxes and lying to regulators. His trial revolved around payments totaling $219,000 he received from Washington Federal between 2011 and 2014. He made one re-payment and paid no interest, but he went on to falsely claim mortgage-interest deductions on his tax returns for the years 2013 through 2017.
Fourteen people have been charged in connection with wrongdoing at the bank, including Crotty, who is the third from that group to plead guilty. Crotty admitted that he helped embezzle $66 million from the bank by falsifying records to cover it up.
Crotty created false appraisals and lied to regulators, even altering the font on a record to make it more difficult to read, according to his 26-page plea agreement.
Crotty was fired from the bank in May 2017. The bank was shut down seven months later in December 2017. That happened just days after its president, John F. Gembara, was found dead in the $1 million Park Ridge home of bank customer Marek Matczuk.
Matczuk has also been charged, and Gembara has been implicated.
Former bank employee Alicia Mandujano also pleaded guilty last month before testifying at Thompson’s trial. She told jurors that Thompson picked up his payments from the bank in Gembara’s office.
A third former bank employee, Cathy M. Torres, has also pleaded guilty.