Photo from the Renton Reporter archives

Photo from the Renton Reporter archives

Former First Financial Northwest Bank CEO sentenced for tax fraud

The former CEO and President, Victor Karpiak, hid $2.3 million of income on tax returns from 2010 to 2016.

The former president and CEO of First Financial Northwest Bank in Renton has been sentenced to one year and one day in prison, one year of supervised release and a $150,000 fine.

Victor Karpiak, 64, who retired in 2013 and left the Seattle area, pleaded guilty in February to filing false tax returns on more than $2.3 million in income from 2010 to 2016, according to the U.S. Attorney’s Office Western District of Washington.

Karpiak was sentenced on May 17 in the U.S. District Court in Wisconsin.

According to facts admitted in his plea, Karpiak served as a consultant for the beneficiary of a family and a martial trust. While he paid himself fees of more than $3.2 million, Karpiak only reported $943,322 on his taxes, less than a third of that income.

The tax loss was $867,540, which Karpiak agreed to pay to the IRS. He also agreed to pay any interest or civil penalties imposed. The interest could be more than $143,647, according to a press release from the U.S. Department of Justice.

First Financial Savings Bank Northwest, which changed its name to First Financial Northwest Bank in 2015, is a subsidiary bank of First Financial Northwest, Inc. The bank has 12 locations, including one ATM-only.

Representatives of First Financial Northwest Bank, which is headquartered in Renton, did not comment on the case in February, adding that the matter does not involve them.

The Renton Reporter covered Karpiak’s retirement plans in 2012. In the article, Karpiak discussed his succession plan to leave a strong executive team for First Financial Northwest.

IRS criminal investigation worked the case.

More in News

Matt Marshall, leader of the Washington Three Percenters gun rights group, addresses a crowd rallying for Second Amendment rights Jan. 17 at the state Capitol in Olympia. Marshall condemned Republican leadership in the House of Representatives, which expelled Rep. Matt Shea from the Republican Caucus. Marshall announced his candidacy for the 2nd District seat held by House Minority Leader J.T. Wilcox. Photo by Cameron Sheppard, WNPA News Service
Gun rights advocates rally at Capitol

Criticism levied at Matt Shea investigation, Republican leadership.

Washington State Attorney General Bob Ferguson (center) announced a lawsuit against Johnson & Johnson in a press conference Jan. 2. Debbie Warfield of Everett (left) lost her son to a heroin overdose in 2012. Skagit County Commissioner Lisa Janicki (right) lost her son to an overdose of OxyContin in 2017. They are joined by Rep. Lauren Davis of Shoreline (second from right), founder of the Washington Recovery Alliance. (TVW screenshot)
AG Bob Ferguson talks lawsuits, gun control

Washington state Attorney General stopped by Sound Publishing’s Kirkland office.

Sen. Mona Das, D-Kent, the primary sponsor of SB 5323, speaking on the bill. (Photo courtesy of Hannah Sabio-Howell)
Proposed law adds a fee to plastic bags at checkout

Senate passes bill to ban single-use plastic bags, place 8-cent fee on reusable plastic bags.

In November 2019, Washington voters approved Initiative 976, which calls for $30 car tabs. Sound Publishing file photo
Republicans try to guarantee $30 car tabs amid court hangup

Lawmakers sponsor companion bills in the House and Senate.

King County Metro’s battery-electric bus. Photo courtesy of kingcounty.gov
King County could bump up Metro electrification deadlines

Transportation generates nearly half of all greenhouse gas emissions in the state.

Photo by Haley Ausbun. Opponent of the Energize Eastside project, Coalition of Eastside Neighborhoods for Sustainable Energy (CENSE) president Don Marsh presents to the Renton Hearing Examiner during a public hearing, Jan. 8, for the project.
Contention over Energize Eastside

PSE, the public and opponents discuss issues for 5 hours

Gov. Jay Inslee delivered his 2020 State of the State Address on Tuesday, Jan. 14. (Photo courtesy of Washington State Office of the Governor)
Gov. Inslee delivers State of the State Address

By Leona Vaughn, WNPA News Service OLYMPIA — Gov. Jay Inslee stood… Continue reading

REA board voted out

Union members use their power to remove leaders from office

Renton schools closed Tuesday for icy road conditions

Schools went from a two hour late start, to closed for Jan. 14

Most Read