Oglesby State Bank (Oglesby, IL)

Episode Information

Episode UID
70150571596
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7015057 routing
Routing Number
70-1505
Start Date
December 1, 1932*
Location
Oglesby, Illinois (41.295, -89.060)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ce8774b1cc035ba7

Response Measures

None

Description

Bank closed Dec 1932 after officer embezzlement; receiver (Fred W. Sauer) handled recovery suits in 1934.

Events (2)
1. December 1, 1932* Receivership
Newspaper Excerpt
Fred Sauer, the bank receiver. ... suits were started ... by Fred W. Sauer, the bank receiver.
Source
newspapers
2. December 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Closure followed discovery/allegations of embezzlement by president, cashier and teller (Radeke, Koons, Salisbury).
Newspaper Excerpt
the bank was closed in December, 1932.
Source
newspapers

Newspaper Articles (3)
1. February 26, 1934 The Times Streator, IL

Article Text

SUIT PLANNED FOR RECOVERY OF BANK LOSS Suit to collect a $15,000 shortage in the accounts of Raimund Radeke and L. B. Koons, former officials of the Oglesby State bank, now serving terms in the state prison at Joliet, will be filed in the circuit court in Ottawa this week. Announcement that the suits would be started against the American Surety company, which was surety for Koons and Radeke, was made today by Fred Sauer, the bank receiver. George V. B. Weeks of Ottawa, bank attorney, will file the suits. Koons, Radeke and Howard Salisbury, officials of the bank, were arrested after it closed and all three were charged with embezzlement. Salisbury has never been brought to trial but Koons and Radeke were convicted in the circuit court. The bonding company has offered, it is said, to make a settlement of the claim with Sauer, but the offer has been refused as being insufficient to cover the losses incurred by the defalcations of Koons and Radeke.

2. March 2, 1934 The Times Streator, IL

Article Text

FILE SUIT TO COLLECT BONDS FORMER OGLESBY BANKERS NOW IN PRISON ARE DEFENDANTS IN ACTION. Suits on bonds to collect approximately $25,000 alleged to have been embezzled by Raimund Radeke, Lester B. Koons and Howard M. Salisbury former president, cashier and teller, respectively, of the Oglesby State Bank were started in the circuit court at Ottawa today by Fred W. Sauer, the bank receiver. The alleged embezzlement Is said to have taken place prior to the time the bank was closed in December, 1932. Radeke and Koons are now servIng terms in the Illinois state penitentiary at Joliet. Salisbury has not been brought to trial, although be was indicted with the other officers. George V. B. Weeks, attorney for the bank, represents Sauer in his action. The suits are brought jointly against the American Surety Company, which furnished the bonds for Radeke, Koons and Salisbury, and the three defendants. The Koons suit was brought to collect on a $10,000 bond. The bill charges that Koons embezzled $11,247.75 from the bank. The Salibury suit was brought to collect on a $7,000 bond. It is alleged that Salisbury embezz!ed $245 from the bank. The Radeke suit was brought to collect on a $10,000 bond. If is claimed Radeke embezzled $18,049.59 from the bank.

3. July 16, 1934 The Times Streator, IL

Article Text

LA SALLE COUNTY COURT NEWS. New Cases. Clyde D. Gaffney, by next friend, etc., vs. Louise Gaffney, bill for annulment. M. & H. Zinc Co. vs. Louis Czerney and Industrial Commission, writ under Workmen's compensation act. Orders. Deroch vs. Ill. Zinc Co., by agreement set for Oct. 1 at 10. Bonachi vs. Balma, hearing and decree for foreclosure. People vs. Utica State bank, motion by receiver to withdraw copy of appraisement for RFC loan. People vs. Oglesby State bank, order on HOLC bonds and sell chattel property. Martin vs. Campbell, order confirming master's report of sale and distribution. Essington vs. Reynolds, on motion of defendant Geo. Reynolds hearing set for Sept. 17 at 1:30 to follow criminal call.