FDIC Sues Security Bank Officials for $22 Million

6:15 PM, Sep 20, 2013   |    comments
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 PDF Document: FDIC Lawsuit

A federal banking agency wants 16 business people to repay nearly $22 million in losses from the failure of Security Bank of Bibb County.

The suit claims that the bank's officers and trustees were negligent.

The Federal Deposit Insurance Corp. claims the bank leaders:

approved loans that violated their own policies and federal and state regulations;

failed to take heed of the declining real-estate market between 2006 and 2009 and continued to approve risky loans;

approved more than $45 million in "insider" loans to bank directors and officials;

The federal agency shut down Security Bank of Bibb County and several smaller affiliated banks in July 2009.

 

The lawsuit estimates that the bank's failure cost the agency's insurance fund $359 million.

Former Security president Dan Forrester referred us to an Atlanta law firm that's representing them; they did not return  phone calls.

 

 

 

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