Community banking

Former Chairman of Failed Illinois Bank Charged with Tarp Fraud

By Andy Peters August 06, 2013, 4:50 p.m. EDT 1 Min Read

Community banking

Failures in Georgia, Illinois Raise 2012 Total to 15

State regulators closed two banks on Friday, bringing the year's tally to 15. The two failures, in Georgia and Illinois, are expected to cost the Deposit Insurance Fund $ 95.6 million.

By Robert Barba

March 23

A former chairman of the failed Premier Bank in Wilmette, Ill., has been charged with fraud in what prosecutors say is the first criminal case tied to the Troubled Asset Relief Program.

Zulfikar Esmail was charged with financial institutions fraud and with organizing a financial crimes enterprise, Crain's Chicago Business reported Tuesday. The Illinois Attorney General also charged Esmail's wife and two former Premier directors. The group was indicted Tuesday in Cook County Criminal Court. The Esmail-led scheme cost the U.S. Treasury Department $6.8 million in Tarp funds, Crain's reported.

Prosecutors claim that Esmail attempted to "shake down" one of the bank's largest borrowers, Michael's Fresh Market, while requiring it to give the bank equity in its developments in exchange for loans. Esmail allegedly took money from Premier to pay for inappropriate personal expenses, such as renovating his home.

Regulators closed the $269 million-asset Premier Bank in March 2012 and sold its assets to International Bank of Chicago.

twitter

For reprint and licensing requests for this article, click here.

Community banking

Law and regulation

TRENDING

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts had combined assets of more than $13 trillion as of December 31, 2023.

By Editorial Staff

1h ago
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

4h ago
Litigation

If Supreme Court sides with CFPB, 'flurry' of litigation moves forward

Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.

By Kate Berry

10h ago

MORE FROM AMERICAN BANKER

Consumer banking

20 banks and thrifts with the most assets

The top five banks and thrifts had combined assets of more than $13 trillion as of December 31, 2023.

By Editorial Staff

1h ago
Regulation and compliance

'Through the looking glass': Jamie Dimon sounds off on regulatory burden

The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.

By Catherine Leffert

4h ago
Litigation

If Supreme Court sides with CFPB, 'flurry' of litigation moves forward

Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.

By Kate Berry

10h ago
Politics

Democrats push back against Corporate Transparency Act ruling

Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.

By Claire Williams

April 23
Commercial lending

'Credit darling' Webster Financial reports uptick in defaulted loans

The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.

By Allissa Kline

April 23
Earnings

Zions, Comerica foresee turnaround on loan growth in late 2024

The two regional banks are anticipating that borrower demand will increase in the back half of the year. High interest rates and economic uncertainty have been muting the appetite for borrowing.

By Catherine Leffert

April 23