Law360, New York (October 25, 2011, 7:02 PM ET) -- The Federal Deposit Insurance Corp. on Tuesday sued the former directors of Illinois-based Mutual Bank, accusing them of costing the now-defunct institution $127 million in bad loans, illegal dividend payments and wasted corporate assets.
The FDIC, acting as receiver for Mutual Bank, said it wanted to recover $115.4 million lost in 12 risky loans approved by the board, $10.5 million in dividend payments that went primarily to ex-Chairman Pethinaidu Veluchamy, and $1.09 million spent on friends and family of board members.
The FDIC blames the downfall...
FDIC Seeks $127M From Mutual Bank's Ex-Directors
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