WILMINGTON, Del. - Nexus Management Ltd., a British investment and trust group, has filed a federal lawsuit against Credit International Bank of Washington, which changed its name last year to Federal Capital Bank.
Accusing the bank of fraud and breach of contract, the suit says that Nexus provided $300,000 in seed money and did not receive options or warrants in return. Douglas Fineberg, a spokesman for Nexus, said the Washington bank would not exist but for that funding, which helped secure a $2 million loan from Crestar Financial Corp.
Several prominent directors of the bank also were named in the suit, including former national security adviser Richard Allen; Edwin Feulner, vice chairman of the Heritage Foundation; Donald Hovde, a fomer director of the Federal Home Loan Bank Board; and Charles Manatt, former chairman of the Democratic National Committee.