Ex-Mercantile Execs Settle SEC Claims Surrounding $5M Loss

Law360, New York (September 25, 2013, 2:51 PM EDT) -- Bankrupt Mercantile Bancorp Inc. and two of its former executives on Tuesday settled charges made by the U.S. Securities and Exchange Commission that they withheld a $5 million probable loan loss and misrepresented the company's financials in 2010.

The Illinois-based bank holding company’s former CEO Ted Awerkamp and Chief Financial Officer Michael McGrath allegedly failed to disclose losses that stemmed from a borrower in a shared national credit loan that was unable to contribute the necessary funding for a large residential real estate development.

The SEC...
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