The president and chief executive officer of BCSB Bankcorp Inc. resigned Monday, four weeks after the Baltimore company revealed that it lost millions in a check-kiting scheme allegedly carried out by one of its commercial customers.
Gary C. Loraditch had been the thrift holding company's top executive since early 1999. David M. Meadows, BCSB's senior vice president and general counsel, has been appointed to fill the position on an interim basis. BCSB is the $800 million-asset parent of Baltimore County Savings Bank.
BCSB said on June 29 that it would take a $6.9 million after-tax charge to its fiscal third quarter, which ended June 30. It took the charge, which will wipe out several years of earnings, after saying it had fallen victim to a check-kiting scheme said to have been perpetrated by A&B Check Cashing of Baltimore.
Two other financial institutions in the Baltimore area also lost millions in the purported scheme.
