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Four Oaks Fincorp (FOFN) in Four Oaks, N.C., and its bank have agreed to pay $1.2 million to settle claims they ignored warning signs of a scheme to defraud customers.
January 9 -
Alabama State Employees Credit Union has filed the first class action lawsuit by a financial services company against Target Corp. over costs from the massive card security data breach the retailer suffered from Black Friday to mid-December.
January 2
The wife of a former Missouri State Representative has filed a lawsuit against Central Bank of Kansas City for alleged fraud.
Silvia Russu filed a lawsuit Jan. 10 in the Circuit Court for Jackson County, accusing the $144 million-asset bank of misrepresenting paperwork that led her to personally back a $358,818 consolidation loan that five lines of credit previously taken out by her husband, Henry Rizzo.
Rizzo "believed that the purpose of the meeting was to execute documents that pledged her interest in properties that would serve as collateral for a loan for Henry Rizzo's business interests," the lawsuit claims. "Rather than fully disclosing all material facts.... [the bank] acted with fraudulent intent to induce [Susan Rizzo] to enter into a co-borrower relationship."
The lawsuit also claims that the bank violated the
The consolidated loan and a related pre-existing loan went into default last year. Central Bank then seized the Rizzos' assets, including five properties jointly owned by the couple and an $89,749 certificate of deposit. The lawsuit alleges that the bank was not entitled to the assets because the consolidation loan was illegally obtained.
Susan Rizzo is seeking more than $75,000 in damages. Her lawyer, Patrick McInerney, and a Central Bank spokeswoman declined to comment.
