U.S. Supreme Court Declines Chicago Bank CEO’s Appeal

(Reuters) – The U.S. Supreme Court declined on Monday to hear an appeal by a Chicago bank’s former CEO, Stephen Calk, convicted of bribery after approving risky loans to Paul Manafort.

Calk, the former chairman and CEO of Federal Savings Bank, sought to land a senior job in Trump’s administration by granting $16 million in loans to Manafort, who was Donald Trump’s 2016 campaign chairman. The justices turned away his appeal of a lower court’s decision upholding his conviction and prison sentence of one year and one day.

Following the loans in 2016, Manafort recommended Calk to Trump’s team for nomination as U.S. Army Secretary, though Calk was ultimately interviewed for a lesser role.

Convicted in 2021 of financial institution bribery and conspiracy, Calk was said to have used his bank as a “personal piggybank” to gain prestige and power. His sentencing included two years of supervised release, 800 hours of community service, and a $1.25 million fine.

The 2nd U.S. Circuit Court of Appeals upheld his conviction in November 2023. Calk argued his actions shouldn’t be considered corrupt, citing differing interpretations of what constitutes a “thing of value” under federal law. The U.S. Justice Department countered, asserting that corruption can involve intangibles, and refuted claims of a split among appellate courts.

Manafort, convicted of tax evasion and bank fraud in 2018, was pardoned by Trump in December 2020 before leaving office. Trump is now the Republican candidate for the upcoming election, competing against Democratic Vice President Kamala Harris.