East West Bank Failed To Back $30M Life Policies, Suit Says

Law360, New York (November 5, 2012, 3:54 PM EST) -- A lender acquired by East West Bank caused the liquidation of life insurance policies worth $30 million by failing to fork over collateral as promised, two men allege in a lawsuit removed Friday to federal court in Washington state.

Joseph and Derek Edmonds accuse Washington First International Bank of failing to cough up collateral required to sustain premium financing from Netherlands-based ING Group that supported a $20 million policy and a $10 million policy. Their complaint was filed Oct. 3.

On several occasions, WFIB violated its...
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