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Chief Lending Officer Pleads Guilty to Concealing Material Facts from FDIC

By Anonymous

The Bank of Clark County was the 2nd bank to fail in 2009. It had assets of $440 million and is estimated to have cost the Deposit Insurance Fund between $120 and $145 million.

From Courtney Sherwood at the Portland Business Journal: Former Bank of Clark County executive pleads guilty to felony charge (ht Jason)

[A] plea agreement filed Friday in U.S. District Court ... outlines former Chief Lending Officer David Kennelly?s guilty plea on a count of ?scheme to conceal material facts.?
...
The bank ordered new appraisals on 23 real estate-backed loans to prepare for [a November 2008 safety and soundness examination by the FDIC and Washington state bank examiners].

Before regulators arrived, Kennelly told a vice president identified as ?K.B.? that there were several appraisals that Kennelly ?did not want to see the light of day,? ...

These were appraisals related to C&D (Construction & Development) loans and obviously showed huge losses for the bank. Hiding material information from examiners is pretty stunning ...

Full post as published by Calculated Risk on February 21, 2010 (boomark / email).