Former Western Springs Bank Chairman Guilty

According to a story in Chicago Business, James A. Regas, former chairman of now-failed Western Springs National Bank & Trust, admitted being guilty to making false statements on regulatory documents to conceal his interest in loans the bank made and that later went bad.

Regas, 82, is also a lawyer and has represented other banks, such as Mutual Bank of Harvey, which also failed. The U.S. Attorney’s office in Chicago says that Harvey is facing a maximum penalty of five years in prison and fines of $250,000. Regas has agreed to pay full restitution. Regas’ sentencing is scheduled to take place on October 25.Former Western Springs Bank Chairman Guilty

Mr. Regas admitted in his plea agreement that he referred business associates to his bank without informing the bank that he had financial interests in the matter.

According to the U.S. Attorney’s office the loans enabled Mr. Regas to use bank funds for his own benefit without having to sign any promises, and they also allowed him to evade federal restrictions on insider loans.

Three loans to entities that can be linked to Mr. Regas resulted in losses of $680,000 plus to the bank. One of the loans was to partially finance three properties for a Regas associate, which resulted in Regas getting half of the money through an intermediary.

The Moser family co-owned the Western Springs bank with the Regas family. They have sued the Regases in 2010 saying the Regases treated the bank as their personal piggy bank. Regas is also a defendant in a $130 million lawsuit relating to Mutual Bank.

The business world is full of intricacies, and lawsuits are not uncommon. If you find yourself in a position where you need legal help, be sure to get that help from experienced business attorneys. Contact your Oak Brook, Illinois business lawyer today for assistance.