FDIC seeks $12 million from former Sonoma Valley Bank executives

From the North Bay Business Journal 

The Federal Deposit Insurance Corp. is seeking more than $12 million from three former officers and directors of the failed Sonoma Valley Bank, claiming in a lawsuit that those individuals knowingly approved millions in risky loans connected to a single borrower in the years leading to the bank’s collapse.

The suit claims that former president and one-time CEO Melvin Switzer, former chief lending officer and CEO Sean Cutting and former vice president and loan officer Brian Melland knowingly acted in violation of both the bank’s internal standards and state regulations for loan concentration in approving 11 transactions in the period between Dec. 20, 2006 and Dec. 17, 2008.

View a copy of the complaint here.

Attempts to reach the defendants were not immediately successful. Attorneys representing the FDIC declined to comment.

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