FDIC Seeks $127M From Mutual Bank's Ex-Directors

Law360, New York (October 25, 2011, 7:02 PM EDT) -- The Federal Deposit Insurance Corp. on Tuesday sued the former directors of Illinois-based Mutual Bank, accusing them of costing the now-defunct institution $127 million in bad loans, illegal dividend payments and wasted corporate assets.

The FDIC, acting as receiver for Mutual Bank, said it wanted to recover $115.4 million lost in 12 risky loans approved by the board, $10.5 million in dividend payments that went primarily to ex-Chairman Pethinaidu Veluchamy, and $1.09 million spent on friends and family of board members.

The FDIC blames the downfall...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Federal Deposit Insurance Corporation vs. Mahajan et al.


Case Number

1:11-cv-07590

Court

Illinois Northern

Nature of Suit

430(Banks and Banking)

Judge

Honorable Virginia M. Kendall

Date Filed

October 25, 2011

Law Firms

Government Agencies

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.