EDWARDSVILLE, Ill. (CN) – Meridian Bank’s president and two members of its board of directors manipulated the bank’s assets for their own gain, a shareholder says in a derivative claim in Madison County Court. Ivan Neathery says board members Clay Winfield and Timothy Keiser granted themselves loans at low interest; sold real estate to Meridian at five times the amount for which it was purchased; and sold Meridian stock to an unsuspecting public at profit.
Winfield and Keiser did all this with the knowledge of Meridian President Brad Rench, the suit states.
Neathery claims the defendants’ conduct left Meridian with inadequate earnings, an inadequate level of capital protection, an inadequate liquidity policy and an inadequate strategic plan.
Neathery seeks actual and punitive damages from the defendants on behalf of Meridian shareholders. He is represented by Patrick Foley of Belleville.