Central Bancorp Owes $21M Over Fraud 'Frenzy,' Judge Told

Law360, Dallas (March 22, 2013, 8:56 PM EDT) -- A putative class of shareholders on Friday asked a Texas state judge to hold Central Bancorp Inc. liable for $21 million they say they’re owed after they discovered they’d bought unauthorized shares in a bank company that grossly inflated its profits and hid millions in debt.

Pacific Bridge Corp. and the Roush Family Trust allege CBI, the holding company for United Central Bank, was wrapped up in a “frenzy of fraud” that led to a 2011 writedown of $90 million in shareholder equity and $100 million...
To view the full article, register now.