The former president of the failed Mutual Bank in Harvey, Ill., has been banned from the banking industry by the Federal Deposit Insurance Corp.

Amrish Mahajan "engaged or participated in unsafe or unsound banking practices and breaches of fiduciary duty" as president of Mutual Bank, causing the company to suffer losses, according to the FDIC order that barred him from banking.

The FDIC's action against Mahajan occurred in May and was first reported Monday in Crain's Chicago Business.

Mutual Bank of Harvey's failure in 2009 cost the Deposit Insurance Fund approximately $917 million.

Mahajan consented to the order without admitting or denying the FDIC's claims. Mahajan was also named in a 2011 FDIC lawsuit seeking $127 million from nine former officers and directors of the bank; it alleges that they used the bank's cash to fund lavish parties. The case is ongoing.

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