James A. Regas, former chairman of Western Springs National Bank & Trust, pleaded guilty in US federal court to making false statements on regulatory documents in order to conceal his interest in loans the bank made.
The 82-year-old lawyer, who resides in Oak Brook, Illinois, has represented several other banks, but he now faces a maximum five-year-long imprisonment and $250,000 in fines, according to the U.S. Attorney’s office in Chicago. Mr Regas agreed to pay full restitution.
In the plea agreement, Mr Regas admitted referring business associates to his bank between 2004 and 2009 without revealing to the bank that he had financial interests in the projects they were pursuing. ”The loans enabled him to use bank funds for his own benefit without having to apply for the loans himself,” said the US Attorney’s office in a press release.
Mr Regas’ family co-owned the now-failed Western Springs bank with the Moster family, who sued the Regases in 2010 alleging they treated the bank as “their own personal bank.”
(Source: Chicago business)