DENVER -- A Colorado bank failed after losing its appeal of a federal court order to return $45.2 million to an investment trust whose adviser was convicted of fraud.
Jefferson Bank and Trust of Lakewood was closed by state regulators July 2 because the amount owed to the Iowa Trust far exceeded the bank's $9 million in capital. Jefferson Bank's deposits of $109.4 million were sold to another Colotado institution.
The funds in dispute were transferred to the bank in 1991 through a series of elaborate transactions handled by Steven Wymer, the Iowa Trust's investment adviser. In May, Mr. Wymer was sentenced to 14 1/2 years in federal prison after pleading guilty to nine felony counts, including securities fraud.