In Brief: Judge Clears N.D. Bank Of Racketeering Charge

A North Dakota community bank that had been accused by a customer of "engaging in a pattern of illegal racketeering" was cleared last week of all charges.

Bismarck lumber dealer Terry Bunk had been seeking $30 million in damages from BNC National Bank, a subsidiary of $420 million-asset BNCCorp. He claimed that BNC bank officials misrepresented the financial health of two businesses they had approached him about acquiring in 1995. Mr. Bunk said the ventures later forced him to declare bankruptcy for another of his businesses.

In dismissing the case, U.S. District Court Judge Patrick A. Conmy ruled that BNC's alleged actions did not meet the requirements for a violation under the federal Racketeer Influenced and Corrupt Organizations Act.

The bank said it spent $50,000 to $100,000 defending the suit.

-- Alan Kline

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