Banking Law

Fax Cited in Hearing Against FL Lawyer

A lawyer for banking regulators pointed to a fax in an effort to show intentional wrongdoing by a former Greenberg Traurig lawyer accused of hiding evidence of $20 million in losses for a now-defunct bank.

Special Counsel Lee Strauss argued that Florida lawyer Carlos Loumiet split pages of a fax to make two transactions look separate for auditors: the downgrading of a Russian loan and the purchase of a junk Hong Kong loan at above-market prices, the Daily Business Review reports. The Office of Comptroller of the Currency claims the loan swap was intended to hide losses.

The agency is seeking a cease-and-desist order in an administrative proceeding to prevent Loumiet from representing federally insured financial institutions.

“This recklessness is not from a newly minted attorney caught in a rookie mistake,” Strauss argued. “He is a sophisticated, experienced attorney.”

Loumiet’s lawyer, Alan Greer, contends his client is being targeted even though the problems were due to lax OCC oversight. “This isn’t even 20-20 hindsight. It’s 20-10,” he argued.

Costly Error Linked to 4th Circuit Nominee

Detainee’s Tunisian Transfer Blocked

We welcome your comments, but please adhere to our comment policy. Flag comment for moderator.

Commenting is not available in this channel entry.