Illinois Bank exec accused in $2.4M fraud

A Chicago Ridge man was accused Thursday of fraudulently selling his bank customers promissory notes totaling $2.4 million, then using the money to gamble at casinos, renovate his home and make credit card payments.


Beginning in 2002 and lasting until January 2009, banking executive Glenn J. Kozeluh obtained money from customers by falsely stating the money would be placed as investments to collateralize loans to buy small banks, according to a criminal complaint filed in U.S. District court.

Instead, Kozeluh used the money for personal expenses, the complaint said.

To lull the customers into a false sense of security, Kozeluh would also use the money to make interest payments and pay principal owed to existing promissory note holders, according to the complaint. He would create fake life insurance documents and then offer to customers additional collateral by assigning the insurance policy proceeds should his death occur before repayment of the promissory notes.

According to the charges, promissory note holders suffered losses totaling at least $2.4 million.