A former officer at Washington Mutual Bank late last week waived his right to indictment and entered a guilty plea to receiving kickbacks from a debt collection agency while he was in charge of the bank’s collection agency outsourcing network.
The office of the U.S. Attorney for the District of Connecticut announced that Michael Gesimondo of Farmingdale, N.Y. pleaded guilty to one count of conspiracy to accept money as a reward in connection with a business transaction of a bank.
Gesimondo was employed as Collection Manager of Business Banking at Washington Mutual Bank, and was in charge of outsourcing collection accounts to collection agencies. Washington Mutual Bank contracted with the Oxford Collection Agency to collect debts owed to it by consumers. Between May 2008 and May 2009, Gesimondo received kickbacks from Oxford Collection Agency as a reward for providing Oxford with the bank’s debt collection business, often providing Gesimondo with a percentage of the collected debt amount.