Former Attorney Sentenced to 25 Years in Washington Federal Bank Embezzlement Scheme

Published Nov. 6, 2026. Case status is current as of that date.

Bank customers lose when insiders treat “loan” paperwork as a cover for diversion. On Aug. 14, 2024, the U.S. Attorney’s Office for the Northern District of Illinois announced that former attorney Robert M. Kowalski, 62, of Robbins, Ill., was sentenced to 25 years in federal prison for embezzlement and fraud connected to the failure of Washington Federal Bank for Savings in Chicago [1].

Status: Convicted of embezzlement, bankruptcy fraud, and tax fraud. U.S. District Chief Judge Virginia M. Kendall also ordered restitution of $7.2 million to the FDIC and $424,047 to the IRS [1].

How the scheme worked, according to prosecutors

According to the U.S. Attorney’s Office [1]:

1. Washington Federal was shut down in 2017 after regulators found it insolvent with at least $66 million in nonperforming loans. Much of the money had been transferred to Kowalski, then a licensed attorney, and two developers without required documentation, falsely recorded as loan disbursements he never had to repay.
2. After the collapse, Kowalski filed a fraudulent bankruptcy concealing assets and filed false tax returns (and failed to file for two years) to cover misrepresentations.

The person sentenced

Robert M. Kowalski, 62, Robbins, Illinois. Former licensed attorney. Sentenced to 25 years [1].

Case status (as of Nov. 6, 2026)

Defendant	Court	Status	Source
Robert M. Kowalski, 62, Robbins, Ill.	U.S. District Court, N.D. Ill. (Chief Judge Virginia M. Kendall)	Convicted; sentenced Aug. 13–14, 2024 to 25 years; $7.2M FDIC + $424,047 IRS restitution	[1]

Statuses can change, including through appeal.

Sources

1. U.S. Attorney’s Office, Northern District of Illinois, “Former Attorney Sentenced to 25 Years in Federal Prison on Embezzlement and Fraud Charges in Connection With Collapse of Washington Federal Bank,” Aug. 14, 2024. https://www.justice.gov/usao-ndil/pr/former-attorney-sentenced-25-years-federal-prison-embezzlement-and-fraud-charges