Fraud Friday – FDIC Sues Former Bank of Commonwealth Officials
September 26, 2014
By Bob Coleman
Editor, Coleman Report
On the eve of the three year deadline to file, the FDIC filed an $11 million lawsuit against former Bank of Commonwealth executives for negligent banking practices.
Says the Virginian-Pilot;
“The FDIC has lost more than $300 million as a result of the bank’s failure.
“The defendants’ negligence, gross negligence, and breaches of fiduciary duty caused damages in an amount not less than $11.4 million.”
“Loans were routinely approved without credit worthiness, with insufficient collateral and generally in violation of bank policies and safe and sound lending practices, the suit says.
“Andrew Sacks, an attorney who represented Ed Woodard in the criminal case and in a related civil suit recently settled with the Securities and Exchange Commission, said he was surprised by the suit and questions the fairness of it, adding that Woodard “has no assets.”
“He noted that Woodard, who is serving a 23-year prison term, already has a $333 million restitution judgment against him from the criminal case. He settled the SEC case without payment.