Judge Rules D.C. Bank May Have Lied To Shareholders

Law360, New York (July 27, 2006, 12:00 AM EDT) -- A judge has ruled that officials at a troubled Washington D.C. bank likely deceived shareholders and thrift regulators in a battle for control of Independence Federal Savings Bank.

U.S. District Judge Rosemary M. Collyer ruled last week that management led an effort to mislead shareholders and prevent Morton A. Bender from gaining control of the institution.

Bender and his wife own 21% of the bank’s outstanding stock, and have been openly critical of its management for years.

“A majority of the board of directors has, to...
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