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Bank Loan Fraud

Miami, FL: (Oct-08-07) The Office of Comptroller of the Currency (OCC), which regulates all national banks, brought charges against Carlos Loumiet, a Hunton & Williams partner, alleging that he helped the now-defunct Hamilton Bank hide losses from $20 million in Russian loans. The suit claimed that Loumiet engaged in unsafe or unsound practices, which cost three Hamilton Bank members their freedom and nearly $1 million in fines for Hunton & Williams, the area's most prominent law firm. The suit stated that owing to the mismanagement, the OCC closed Hamilton Bank in 2002. The failure cost the federal insurance fund $127 million and public shareholders lost their entire investment. The CEO of the bank, Eduardo Masferrer, was convicted of 16 fraud charges and sentenced to 30 years in prison after two other officers, President Juan Carlos Bernace and John Jacobs, pleaded out and testified against him.

As part of a settlement reached, the OCC sought a cease-and-desist order from Administrative Judge Ann Cook that would bar Loumiet from providing legal counseling to any federally insured financial institution. Loumiet stands to pay the OCC a $250,000 fine for his unscrupulous conduct. [LAW.COM: BANK LOAN FRAUD]

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Last updated on Oct-10-07