FDIC Sues Execs For $417M Over R-G Premier Collapse

Law360, New York (January 18, 2012, 7:04 PM EST) -- The Federal Deposit Insurance Corp. on Wednesday launched a $417 million suit against 19 former directors and officers of R-G Premier Bank of Puerto Rico for causing one of the largest bank failures in Puerto Rico's history.

The complaint, filed in Puerto Rico federal court, accuses the directors and officers, including bank founder Victor J. Galan-Alvarez, of negligently overseeing the bank's expansion into commercial lending, ignoring repeated warnings by regulators and personally approving just about any loan request, no matter how unlikely the loan's eventual repayment...
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