PHILADELPHIA - (12/15/04) -- Robert F. Bentley, president of thenow-defunct Bentley Financial Corp., was charged Tuesday with fraudand bribery in the operation of one of the largest Ponzi schemesever that victimized more than 200 credit unions and banks to thetune of millions of dollars. The two-count criminal informationcharges Bentley sold more than $370 million worth of securities hebilled as FDIC-insured CDs which were really just Bentley'spromises to repay the notes, causing losses of more than $24million to investors, including about 100 credit unions. Ifconvicted on the charges Bentley could be sentenced to up to 35years in prison. Bentley has already settled civil fraud chargeswith the Securities and Exchange Commission and agreed to forfeitmore than $2 million to the SEC. The SEC shut down BentleyFinancial in 2001 and created the biggest receivership ever in SEChistory aimed at repaying more than $370 million in claims fromcredit unions and other investors. Frank Mayer, a Philadelphiaattorney administering the receivership, said they have succeededin paying more than $330 million, or 90%, of the claims so far, andare continuing to pursue additional resources. "We're still hopingto get some more recoveries," Mayer told The Credit Union JournalTuesday, of litigation and bond claims he is pursuing on behalf ofthe claimants.
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The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
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Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
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The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
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In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
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To build their executive presence in meetings and on video calls, junior employees should embrace flexible schedules — and possibly media training, Michelle Young of Worldpay and Anna Greenwald of MoneyGram International said at American Banker's Payments Forum.
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Liberty Bank in Salt Lake City had been "structurally unprofitable" since 2008, according to its regulators. Experts criticized the FDIC for allowing the bank's demise to play out in slow motion.
April 25