(Source: Zeke Campfield The Oklahoman, Oklahoma City (MCT) — An Oklahoma City law firm paid $600,000 to settle a lawsuit filed by the Federal Deposit Insurance Corporation, records reveal.
The firm Andrews Davis Law, 100 N Broadway Ave., and two of its attorneys — D. Joe Rockett and Matthew H. Griffith — paid the sum earlier this year to settle a suit filed by FDIC in October 2011, according to U.S. District Court records.
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The corporation filed the lawsuit in an attempt to recover outstanding loans that contributed to the failure of First State Bank of Altus in 2009, spokesman, David Barr said.
In the lawsuit, FDIC accused the firm and its representatives of negligence and malpractice in representing the Altus bank and its former chief executive and board chairman, Paul Doughty.
The corporation alleged the firm facilitated bad loans worth as much as $13.5 million from the bank to its subsidiaries, overseen by Doughty and his partner, Fred Dan Anderson.
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 remains to be liquidated, plus about $5 million in cash, Barr 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.
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Source: Zeke Campfield The Oklahoman, Oklahoma City (MCT)
