FDIC Seeks $8 Million From Bank Execs

     LAS VEGAS (CN) – The Federal Deposit Insurance Corp. sued eight executives at the failed Sun West Bank for $8 million, claiming they approved risky loans in violation of their own lending guidelines.
     The federal complaint is the latest in a string of actions in which the FDIC is trying to claw back money from directors of banks that failed during the financial meltdown that began in late 2007.
     “Defendants established a pattern of ignoring regulatory advice, breaching the bank’s own internal lending policies, and violating prudent lending practices by engaging in risky and speculative commercial real estate lending,” the FDIC says in its complaint.
     Suing as receiver for the bank, the FDIC claims the defendant executives “violated loan policies” by “recommending or approving speculative commercial real estate lending transactions despite known adverse economic conditions in the Nevada real estate market.”
     They recommended and approved credit to borrowers who were not creditworthy or in financial difficulty, approved credit based on inadequate information, approved loans with excessive loan-to-value ratios, and approved loans that were undesirable under the bank’s own lending policies, the FDIC says.
     It does not seek to collect on the outstanding loans, but seeks damages for defendants’ negligence and breach of fiduciary duties.
     The Nevada Department of Business and Industry closed Sun West Bank on May 28, 2010.
     Named as defendants are CEO Jacqueline Delaney, and bank directors and officers Larry Carter, Mark Stout, Kenneth Templeton, John Shively, Steven Kalb, Jerome Snyder, Hugh Templeton, and Rick Dreschler.
     Collectively, the defendants, as directors of the bank, owned 829,176 shares, or 59.3 percent of the stock in Sun West Capital Corp. (Bancorp), which has not filed for bankruptcy protection.
     The FDIC is represented by Robert McCoy with Morris Law Group.

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