The Federal Deposit Insurance Corp. is suing eight former officers and directors of Habersham Bank over their role in the failure of the Clarkesville, Ga., lender.
The FDIC is seeking at least $15.3 million in damages, according to a complaint filed Friday in a Georgia U.S. district court. The defendants allegedly approved high volumes of risky commercial real estate loans that led to Habersham's failure in February 2011.
The collapse of the $388 million-asset bank cost the FDIC roughly $141 million, according to the complaint. It was purchased by SCBT Financial Corp. (SCBT) in Columbia, S.C., which now operates under the name First Financial.
The former Habersham officers named in the lawsuit include Chief Executive David Stovall, Chief Operating Officer Bonnie Bowling, Chief Credit Officer M. Edward Hoyle, Vice President of Commercial Lending Andrew Coker and Senior Vice President Frank Felker.
Former directors Edward Ariail, Michael Martin and Michael Owen, all of whom were members of the bank's loan committee, are also named in the suit.
All eight defendants face charges of negligence, gross negligence and breach of fiduciary duty.