An Oklahoma City law firm paid $600,000 to settle a lawsuit filed by the Federal Deposit Insurance Corporation, according to U.S. District Court records.
Andrews Davis Law, and two of its attorneys - D. Joe Rockett and Matthew H. Griffith - paid the sum in April to settle a suit filed by FDIC in October 2011. The FDIC filed the lawsuit in an attempt to recover outstanding loans that contributed to the failure of First State Bank of Altus in 2009.
The FDIC alleged the firm facilitated bad loans worth as much as $13.5 million from the bank to its subsidiaries, overseen by former CEO and board chairman Paul Doughty and his partner, Fred Dan Anderson. The FDIC had accused the firm and its representatives of negligence and malpractice in representing First State Bank of Altus and Doughty.
FDIC spokesperson David Barr said the FDIC estimates it has assumed $19.6 million in losses as of the end of 2010 related to its takeover of the 100-year-old bank. Another $23.7 million in bank assets is still to be liquidated, plus about $5 million in cash, he said.
Among losses experienced by the bank were unpaid loans to airplane manufacturer Quartz Mountain Aerospace, which went bankrupt in 2009, and to several failed real estate ventures in Colorado and Alabama.
