O/T(?)
Church sues BestBank ex-execs
Tampa ministry, under investigation itself, claims $50 million loss
By Carly Schulaka
Camera Business Writer
Former executives of the defunct BestBank are being sued by a Tampa, Fla.-based ministry that claims it suffered more than $50 million in damages as a result of the Boulder-based bank being shut down last year.
BestBank was closed by the state Division of Banking in July because it had more than $134 million in losses and only $23.1 million in reserves. State banking authorities have attributed BestBank's losses to sub-prime lending — issuing credit cards to people with blemished records.
In the past year, the Federal Deposit Insurance Corp. filed a civil suit against former bank executives seeking unspecified damages, and a criminal investigation into the bank's failure was launched.
Gerald D. Payne, trustee for Greater Ministries International Church, filed a civil suit in Denver District Court on Friday against BestBank owner Edward P. Mattar and the bank's former president, Thomas Alan Boyd.
Effective Management Systems Inc., a Nevada corporation owned by Mattar that contracted with BestBank, and Fort Lauderdale, Fla.-based Century Management Systems Inc., also were named in the suit, as were individuals Douglas R. Baetz and Glenn M. Gallant — both shareholders of Century Financial Group.
The suit claims Greater Ministries International Church lost the $18 million it had deposited in BestBank accounts and suffered general damages of more than $50 million as a result of the defendants' "negligence and carelessness." (cont)
bouldernews.com |
