SEC Accuses Former Va. Bank Execs Of Lying To Investors

Law360, Los Angeles (January 9, 2013, 7:56 PM EST) -- The U.S. Securities and Exchange Commission on Wednesday hit three former Bank of the Commonwealth executives with a lawsuit in Virginia federal court, accusing them of violating securities laws by covering up a multi-million dollar hemorrhage to investors during the 2008 financial meltdown.

The securities regulator alleged the bank’s former top managers, Edward J. Woodard, Cynthia A. Sabol and Stephen G. Fields, told investors it was “conservatively” managing its loan portfolio in order to reign in reserve losses during the downturn.

But Woodard, Sabol and Fields...
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