Former Winder banker Chris Maddox is being sued by the Federal Deposit Insurance Corp. for his alleged role in bringing down a national bank that his father helped found more than two decades ago. In a federal lawsuit filed Aug. 22, the FDIC cites Maddox’s roles as both a member of the board of directors of Silverton Bank N.A. and as a member of an executive loan committee.
The suit claims the directors wasted millions of dollars on lavish spending and the loan committee approved millions of dollars in loans for developments without substantiating the credit worthiness of the borrowers or making sure the collateral for the loans was sufficient.
The 102-page suit was filed against 15 former directors, two former bank executives and two insurance companies and seeks to recover at least $71 million in losses that the FDIC sustained after the bank was closed in May 2009 by the Office of the Comptroller of the Currency.
The suit, which was filed in the U.S. District Court for the Northern District of Georgia, seeks to hold Maddox personally liable for his votes that led to $20.6 million in bank losses.
He is accused of participating in questionable spending decisions that included the 2007 purchase of a $3.5 million Falcon 20 airplane for the bank’s holding company and the $1.35 million purchase of a King Air airplane from the bank’s former president and CEO, and the decision to build a $3 million hangar to house the aircraft.
The lawsuit also attempts to hold Maddox liable for agreeing in 2006 to the construction of a “palatial” new bank headquarters “replete with 26 conference rooms” while Silverton still owed $2.47 million in lease payments on its existing office space.
For the full story, see the Aug. 31 issue of the Barrow Journal.