Bank CEO Stephen Calk Indicted: Loans for a Job?

NEW YORK, NY – Stephen M. Calk, the former chairman and CEO of a Chicago-based bank, is facing federal charges of financial institution bribery, authorities announced today. The indictment alleges Calk corruptly used his position to approve a staggering $16 million in high-risk loans in a desperate bid to land a senior position – specifically Secretary of the Army – within an incoming presidential administration. The scheme, according to prosecutors, was a blatant attempt to trade financial favors for political clout.

Audrey Strauss, the Attorney for the United States, minced no words in detailing the allegations. “As alleged, Stephen M. Calk abused the power entrusted to him as the top official of a federally insured bank by approving millions of dollars in high-risk loans in an effort to secure a personal benefit, namely an appointment as Secretary of the Army or another similarly high-level position in the incoming presidential administration,” she stated. The loans, ultimately flagged and downgraded by the bank’s primary regulator, were apparently riddled with “red flags” that Calk intentionally ignored.

The FBI and the FDIC Office of Inspector General (OIG) jointly investigated the case. William F. Sweeney Jr., Assistant Director-in-Charge of the New York FBI Field Office, emphasized the lengths Calk allegedly went to. “Calk went to great lengths to avoid banking violations in an attempt to secure a senior position in a presidential administration,” Sweeney said. “He curried favor with an influential borrower, exploited his position as CEO…and exercised control over the bank and the borrower’s loans, intentionally turning his back on the many red flags posted along the way.”

The “Borrower,” identified as a lobbyist and political consultant, held a senior role with a presidential campaign beginning in March 2016, even serving as campaign chairman from June to August of that year. After the campaign’s formal phase, the individual continued to exert influence through the presidential transition team. Prosecutors allege that between July 2016 and January 2017, Calk actively engaged in the corrupt scheme, leveraging his bank’s resources to benefit the Borrower in exchange for political connections. The Bank, a federal savings association with offices in Chicago and New York, is wholly owned by a Chicago-based holding company, of which Calk owns approximately 67%.

Patricia Tarasca, Special Agent-in-Charge of the FDIC OIG New York Region, underscored the severity of the alleged misconduct. “Today’s indictment charges Stephen Calk with misusing his position as Chairman and Chief Executive Officer of a bank for his own personal gain,” Tarasca said. “The FDIC Office of Inspector General remains committed to investigating cases where bank officials cause multimillion-dollar losses to a financial institution and undermine its integrity.”

STEPHEN M. CALK is expected to be presented before U.S. Magistrate Judge Debra Freeman this afternoon. If convicted of financial institution bribery, Calk faces significant penalties. This case serves as a stark reminder that even those in positions of power are not above the law, and attempts to corrupt the financial system for personal or political gain will be met with swift and decisive action. The Grimy Times will continue to follow this case as it develops.

MORE FEDERAL CRIME NEWS

White Collar Crime

John David McKelvie, Violations of the Clean Water Act, Utah 2008

Mar 22, 2006

White Collar Crime

Molina Mendoza, Wire Fraud, Maryland 2015

Jan 15, 2015

White Collar Crime

Spotted War Bonnet, Wire Fraud, South Dakota 2008

Jan 15, 2008

White Collar Crime

Brian Carter, Theft of Mail and Delay of Mail, Louisiana 2013

Jul 17, 2015