Surety is sued for not covering bank's losses after alleged fraudulent cow-leasing scheme

09/11/2013 | Courthouse News Service

The Federal Deposit Insurance Corp. has sued a surety as the agency acts as receiver of a Colorado bank accused of operating a Ponzi scheme. The FDIC said the alleged scheme involved $37 million in loans benefiting a Colorado dairy and its affiliates. The FDIC assumed the collapsed bank's assets, but the surety declined to cover the bank's losses under an $11 million fidelity bond, prompting the FDIC's lawsuit.

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