Former LaSalle Bank executive indicted in $45 mil. bribery case
A former LaSalle Bank executive from Des Plaines and a security firm owner from Bloomingdale have been indicted in a $45 million fraud and bribery case, according to federal authorities.
The Bloomingdale resident and owner of the Wood Dale-based security firm implicated in the indictment, Armando Navarrete, was arrested and remanded into federal custody this morning after appearing before U.S. Magistrate Judge Sidney Schenkier.
Navarrete, 45, will remain at the Metropolitan Correctional Center in Chicago until his bond hearing Friday, according to authorities.
Because Navarrete is a native of Cuba and because federal authorities are seeking $45 million in forfeiture from him and his security firm, U.S. Attorney Patrick Fitzgerald's office argued successfully that Navarrete posed a flight risk, according to Randall Samborn, a spokesman for the office.
The Des Plaines resident and a former first vice president of ABN AMRO and LaSalle Bank, George Konjuch, 54, will be arraigned at a later date, federal authorities said.
In the indictment, the government alleges Konjuch headed security for the Chicago-based bank and steered millions of dollars worth of work to Wood Dale-based Navarrete Industries Inc., doing business as Integrated Security Solutions and INS, in return for $400,000 in cash and various other benefits.
The 22 count indictment alleges Navarrete paid the bribes and over-charged the bank by $45 million.
The indictment seeks $45 million in penalties from Navarrete and INS, $400,000 from Konjuch and their homes and business premises.
According to the indictment, the fraud took place from 2001 to 2006.
Konjuch knew the bank was paying substantially above-market prices for "preventable maintenance on security equipment" and other services, according to the indictment.
In return, Konjuch and members of his family got cash, two safes, installation of a home security system, home landscaping, snow removal, exercise equipment, travel expenses to Las Vegas and Puerto Rico, a $10,000 wedding present to his daughter, and attorneys fees for his son.
The government also alleges Konjuch under-reported his income on his federal income tax returns for 2005 and 2006.
Each count of bank fraud and bribery against Konjuch and Navarrete carries a maximum penalty of 30 years in prison and a $1 million fine.
The tax fraud counts against Konjuch carry maximum 3 year prison terms and $250,000 fines.
Other counts against Navarrete carry maximum penalties of 10 years and $250,000 fines.
Charges against INS carry a maximum penalty of five years probation and a $1 million penalty, according to federal authorities.