The president and co-founder of a Queens, N.Y., bank was suspended by federal regulators last week after his arrest on charges of misusing bank funds.

Joseph C. Liu and three former directors and officers of Great Eastern Bank were charged with conspiracy and falsifying records in connection with the bank's lease on a building owned by Mr. Liu and other bank directors.

The 30-year lease was approved by the bank's board in 1990. The defendants were charged with using bank funds to make lease payments that law enforcement officials said exceeded "fair market value," according to documents filed last week in U.S. District Court for New York.

If convicted, the defendants face up to 30 years in prison and $1 million of fines.

Mr. Liu, 62, was immediately suspended by the board of the Federal Reserve Bank of New York. William J. Laraia, former president of Apple Bank in New York, has been named acting president of Great Eastern until the case is resolved.

Great Eastern Bank, with $208 million of assets, was founded in 1986, primarily to serve the Asian community in and around Flushing, N.Y.

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