The Federal Deposit Insurance Corp. has filed a civil suit seeking $32 million in damages from six former Integra Bank officers, alleging that they showed “negligence, gross negligence and breaches of fiduciary duty” with respect to the bank’s lending policies.
The suit, filed late last month in U.S. District Court for the Southern District of Indiana, names as defendants Michael Vea, Bradley Stevens, Raymond Beck, Archie Brown, Ward Clark and Roger D. Watson. All of the defendants had left the bank by February 2010, and all now live outside of Evansville, according to the suit.
Integra failed on July 29, 2011, and the estimated cost to the FDIC’s Deposit Insurance Fund was $227.4 million. Money for this fund comes from premiums paid by FDIC-member financial institutions.
In the suit, the FDIC details 11 different loans to seven different borrowers, saying that these loans exemplify the defendants’ “negligence, gross negligence, and breaches of their fiduciary duties in their numerous, repeated, and obvious violations of the Credit Risk Policy, underwriting requirements, banking regulations, and prudent, safe, and sound banking practices.”
Losses from these 11 loans, the FDIC alleges, caused damages of approximately $32 million.
This is a developing story. Check back later for more details.
VIDEO: Frosty weather changes Halloween plans
The frosty weather caused trick-or-treaters throughout Indiana to change their Halloween plans Friday night.
Anthem tells 30K in Indiana to switch policies
Anthem Blue Cross and Blue Shield has sent notices to 30,000 people in Indiana that it is canceling health care insurance policies and asking…
INDOT preparing for tricky driving conditions
The state Department of Transportation is warning drivers to be aware that strong winds, near-freezing temperatures, rain, sleet and snow…
Domestic violence sweep results in 119 arrests
As October comes to an end, the Marion County Sheriff's Office was celebrating a successful month of tracking down those accused of domestic…
Record-setting Halloween weather across Indiana
Are you as excited as Storm Team 6 Chief Meteorologist Kevin Gregory for the first snowfall of the season?
Crime Stoppers reports increase in tips, arrests
New numbers show that central Indiana residents have teamed up with police to help fight crime.