FDIC Targets Heritage Bank Execs Over $20M In Losses

Law360, New York (November 2, 2010, 2:33 PM EDT) -- The Federal Deposit Insurance Corp. has launched a suit seeking to recover at least $20 million in losses sustained by Heritage Community Bank as a result of 11 former executives' alleged inability to properly manage and supervise the defunct Illinois bank's commercial real estate lending program.

The 11 defendants failed to protect the bank from the substantial inherent risks of large-scale CRE lending by routinely financing CRE projects without any meaningful analysis of their economic viability and often without adequate appraisals, the FDIC, in its capacity...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.