Tuesday, July 15, 2014

Bank CFO waits in limbo over threat of criminal suit by FDIC!

Ex-bank CFO waits in limbo over 

threat of criminal suit

Cynthia Sabol, former chief financial officer at Bank of the Commonwealth, has been waiting 13 months for federal authorities to indict her. Or not.

"Ms. Sabol remains in jeopardy of broadly drawn criminal charges."

Bank of Commonwealth's CEO and EVP, "were convicted in federal court last year of orchestrating, with other defendants, a massive conspiracy to defraud the bank by hiding loan losses and committing other illegal banking practices." The executives "are serving lengthy prison terms."

"Sabol also was linked to the bank misconduct in the SEC's lawsuit." That suit accuses Sabol, the CEO and EVP "of securities fraud and claims their actions cost shareholders all their equity, in the hundreds of millions of dollars."


(pages 4 & 12 in OIG Report)


(page 13 in OIG Report)

Wednesday, July 2, 2014

Coincidence or SOP by FNB?

Two excerpts from two documents.....

 Examiners determined that the bank had masked its OREO problems by financing OREO sales on liberal terms, capitalizing property taxes, and advancing funds on borrowers’ other loans to cause the borrowers to remain current on OREO loans. The 2011 MRA expressed concerns over First National’s aggressive strategy to sell OREO without implementing proper accounting policies and practices, and directed the board to make accounting adjustments and file amended call reports.

27.   Grantor represents that this deed of trust and the Note are given for the following purposes:

A portion (approximately $100,000.00) of the debt evidenced by the Note is being or has been advanced by the Beneficiary to or on behalf of Grantor in part payment of the purchase price of the Property and/or for ad valorem taxes paid as part of the acquisition of the Property from prior owner(s);  the debt is secured both by this deed of trust and by a vendor's lien on the Property, which is expressly retained in a deed to Grantor of even date.  This deed of trust does not waive the vendor's lien, and the two liens and the rights created by this instrument shall be cumulative.  Beneficiary may elect to foreclose under either of the liens without waiving the other or may foreclose under both.  The deed is incorporated into this deed of trust.

Who is going to be accountable????

Surely the FBI has already taken note of this!!