Milwaukee Avenue State Bank

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 1, 1909*
Location: Chicago, Illinois (41.850, -87.650)

Metadata

Model: gpt-5-mini
Short Digest: 042bd34b

Response Measures

None

Description

Article (1918) reports the Milwaukee Avenue State Bank failed more than eight years earlier and was under receivership after its president Paul O. Stensland confessed embezzlement of $800,000. No mention of a depositor run in the article; failure was due to bank-specific embezzlement and the bank remained in receivership and paid about 70 cents on the dollar.

Events (2)

1. January 1, 1909* Receivership

Newspaper Excerpt: Stensland, confessed embezzler of $800,000 from the Milwaukee Avenue State Bank, which failed more than eight years ago... The bank, under receivership, paid about 70 cents on the dollar.
Source: newspapers

2. * Other

Newspaper Excerpt: Paul O. Stensland... pleaded guilty to embezzlement of the bank's funds, and was sentenced to five years in prison.
Source: newspapers

Newspaper Articles (1)

1. April 16, 1918 Evening Star Washington, DC

Article from Evening Star, April 16, 1918

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Article Text

# DIES BEFORE RESTITUTION. Stensland, Paroled, Sought to Pay Chicago Bank $800,000. CHICAGO, April 16. - Paul O. Stensland, confessed embezzler of $800,000 from the Milwaukee Avenue State Bank, which failed more than eight years ago, died yesterday of a complication of ailments at the age of seventy-one. Just before the failure of the bank, of which he was president Stensland fled to Tangier, Morocco, where a few weeks later he was arrested by James Keeley, general manager of the Chicago Tribune. Stensland was brought back to Chicago, pleaded guilty to embezzlement of the bank's funds, and was sentenced to five years in prison. After serving a little more than one year he was paroled and he set about to make another fortune in order, he said, that he might repay in full the depositors of the wrecked bank. Ill-health overtook him and he made only indifferent progress toward recouping his fortune. The bank, under receivership, paid about 70 cents on the dollar.