Tuesday, May 13, 2014

Who knew about FNB's OREO "Funny Business"?

Here's the scene, it's April 14, 2011.
Picture yourself in a jam packed courtroom listening to testimony so a Judge can decide how long to sentence Mauro Padilla for.  U.S. Assistant District Attorney Jim Blankinship calls up former FNB attorney Eric Sherer to the stand. Sherer, also a defendant in the Tundra Village scandal AND a former (and fired) attorney for several plaintiffs in that lawsuit is asked many questions about FNB and the details surrounding the foreclosure of the Tundra Village development, and what an OIG report purports as masking a huge loss on the property.

Q. (Blankinship)  Okay. And by not writing it down to its true value, they get the benefit of maintaining that value, kicking the can down the road a little bit, until the day the regulators make them come to grips with the true value of that property; is that right?

A. (Sherer)  That's my understanding, yes, sir.

So it is clear, that under oath, Mr. Sherer was well aware, back in 2011 about the "masking" of this loss.  But let's not forget that Sherer was the foreclosing attorney on this property in 2009 when Jadon Construction of Edinburg "acquired" this project in October 2009 for $9.3M (despite a $2M appraisal)!  

Somehow, the OCC did NOT discover this one either until 2013???


  1. Hope they FDIC get them all. Rich people living with false money. Now the same group has Texas National Bank. OMG.????

  2. Wow, I was under the impression that Texas National was going to be shutdown???? Did they implement some of those funny rules in TNB as well??? To make it look solvent.

  3. how does FDIC let that group buy another bank. they should be banned from the banking business for life. they will use their same rules at that bank and run it into the ground and cost more money