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Last updated on Tuesday, October 4, 2011
(COLUMBUS) - The bankruptcy trustee of the Irwin Financial Corporation has filed a lawsuit against Chairman William I. Miller and two other executives.
The plaintiff is seeking hundreds of millions of dollars, alleging the three failed in their responsibilities in operating Irwin Union Bank.
Chairman William I. Miller, Chief Financial Officer Gregory Ehlinger and Executive Vice President Thomas Washburn have all been named in the lawsuit which alleges the three made risky home and commercial mortgage loans.
There is no claim of illegal activity. the Trustee, Elliott Levin, is also suing the FDIC for their alleged part in Irwin Union's collapse.
Paul Freeman, executive vice president for member services of the Indiana Bankers Association, says while only a few Indiana banks have failed, the number nationwide tell a different story, as hundreds of banks have been shut down by federal regulators.
Along with Irwin Union, Integra Bank was the only other Indiana bank shuttered by the federal government. Freeman says that suing those involved with a failing bank has become popular as the nation's financial crisis continues. but, he says that a lawsuit doesn't mean that criminal activity is being suggested. without addressing the merits of this lawsuit, Freeman added that these types of suits often fail.
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