Estate Of Bank Chairman/CEO Sued To Recover $17.3 Million Investment In TARP Bank

Jul. 10, 2015 2:10 PM ET
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Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 46 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on several company board of directors. He was a syndicated business columnist in news from Silicon Valley, California, for 12 commercial newspapers in the 1970's and early 1980's. Prior to getting into the financial business, he was a West Coast News Producer for ABC-TV News, Managing Editor KGO-TV News, San Francisco, California, and news editor at KFRC News, San Francisco, California. His three times a week news edition posted at www.leasingnews.org is read by over 175,000 in the trade and by related entities each month.


Bank Chairman/CEO Layton Stuart

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the U.S. Department of Justice announced that the United States is suing the estate and trusts of the late Layton P. Stuart, Chairman and CEO of One Financial Corporation, and its wholly owned subsidiary, One Bank & Trust N.A., both based in Little Rock, Arkansas, and a TARP recipient, alleging that Stuart made misrepresentations to induce the U.S. Department of the Treasury to invest $17.3 million of Troubled Asset Relief Program (TARP) funds in One Financial as part of Treasury's Capital Purchase Program (CPP).

Layton "Scooter" Stuart, 62, passed away March, 2013.

According to the United States' complaint, Stuart, on behalf of One Financial, applied in late 2008 for a TARP investment totaling $17.3 million. The complaint alleges that Stuart knowingly made false statements about the financial condition of One Bank and its intentions for the use of the TARP funds. In particular, the statements and TARP application allegedly concealed serial frauds that Stuart and other One Financial directors and bank executives had been committing and intended to continue committing on One Bank.

As set forth in the complaint, the schemes involved Stuart's diversion of funds from One Bank for personal use including, within 30 days of receiving the $17.3 million in TARP funds, the diversion of more than $2 million into personal accounts for his own use.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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