Oglesby State Bank (Oglesby, IL)

Episode Information

Episode UID
70150571595
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
7015057 routing
Routing Number
70-1505
Start Date
November 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
59724c3577cc0a25

Response Measures

None

Description

OCR corrected minor names; failure tied to officer embezzlement and shortages.

Events (5)
1. November 1, 1932* Receivership
Newspaper Excerpt
Fred Sauer, receiver, now prepared to have those depositors the amount of their claims, he said; Fred Sauer, the bank receiver, was appointed to liquidate the bank's assets.
Source
newspapers
2. November 1, 1932* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank closed after discovery of shortages and alleged embezzlement by officers (Radeke, Koons, Salisbury).
Newspaper Excerpt
When the bank closed its doors in November
Source
newspapers
3. January 14, 1933 Other
Newspaper Excerpt
Radeke and former officials the Oglesby State Bank...were arraigned...records showed them to be short their accounts.
Source
newspapers
4. February 26, 1934 Other
Newspaper Excerpt
Suit to collect a $15,000 shortage in the accounts of Raimund Radeke and L. B. Koons...will be filed...by Fred Sauer, the bank receiver.
Source
newspapers
5. March 2, 1934 Other
Newspaper Excerpt
Suits on bonds to collect approximately $25,000 alleged to have been embezzled by Raimund Radeke, Lester B. Koons and Howard M. Salisbury...were started...by Fred W. Sauer, the bank receiver.
Source
newspapers

Newspaper Articles (5)
1. January 14, 1933 The Times Streator, IL

Article Text

FORMER OFFICIALS STILL IN JAIL Radeke and former officials the Oglesby State Bank, still the La Sall county through failure to provide surety in amount of $20,000 bonds fixed by Justice of the Peace George Koenig at Ottawa, before they arraigned yesterday on charges. Bondsmn appeared for both fendants the hearing yesterday, but unable to schedule sufficiently property to cover the amount. Howard Sailsbury, the third man be in the charges, at liberty today on bond. All three were taken into cuswhen survey of the bank tody records showed them to be short their accounts. While the $25,000 were not the primary cause the failure of the Oglesby state bank, Mason, president the institution, when said today. The actual cause of the closing, he said, the inability of the meet the 100 cent stock when the bank was refinanced after flurry in Senator expressed his deep appreciation for the support accorded him and other ficials of the bank by the patrons and at the same time added his expression hope that the case would probed the extreme and that the guilty persons would be prosecuted. The removal of James Pryde Oglesby city ceiver stockholders the Oglesby State bank, will be sought by Russell Hanson, attorney for the depositors bank receiver, at hearing the circuit court Ottawa, learned today. When the bank closed its doors in November, Oscar Nelson, who then auditor, named Fred Sauer La Salle as receiver and later named Hamson attorney. few days later, Judge Frank H. Hayes the circuit court, at hearing on petition signed by several depositors, named Pryde receiver to collect the stockholders liability. Pryde has never filed his bond nor qualified for this office. Sancontends work more efficiently than to have the work divided two men.

2. February 8, 1933 The Times Streator, IL

Article Text

OGLESBY FILE CLAIMS Aside of As Important Liquidation. With the entry of court order by Judge Edgar E. ting aside the per cent deposit waivers signed by patrons the Oglesby State Bank, Fred Sauer, receiver, now prepared to have those depositors the amount of their claims, he said. been this court action to permit us to that phase of the assets," he result, we now go ahead without any fear of the depositors entering faulty claim. know just the amount they had on deposit in the bank when closed and can figure the interest on it to that time." Sauer said that he expected rush of depositors during the next few days to file their and was making preparations to handle the The court order allowed after Attorney Russell Hanson, counsel for the bank, had filed lengthy motion in the circuit court, setting forth that the bank had failed to comply with its end of the agreement when the institution financed in September. At that time, the depositors had waived their right to 50 per cent their deposits and those waivers had held up the final entry of claims for the amount in the varlous accounts. The action was one of the important steps Sauer has undertaken since he was appointed as receiver and expected to mean much toward the ultimate liquidation the bank. The receiver said that he was meet again this week with several members of the group to consider answers to the balance of the nine questions propounded by that organization some weeks in effort to obtain definite insight of the workings of the bank prior to and after its closing. Pritchard, chairman the committee, said that there was nothing developing in of the investigation being pursued by that body.

3. 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.

4. 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.

5. 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.