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FDIC Settles - Andrews Davis law firm pays $600K to settle lawsuit

Firm pays $600K to settle lawsuit

Oklahoman
Zeke Campfield, July 10, 2012

An Oklahoma City law firm paid $600,000 to settle a lawsuit filed by the Federal Deposit Insurance Corporation, records reveal. Andrews Davis Law, 100 N Broadway Ave., and two of its attorneys - D. Joe Rockett and Matthew H. Griffith - paid the sum in April to settle a suit filed by FDIC in October 2011, according to U.S. District Court records. 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 FDIC 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.


FDIC, Oklahoma City attorneys reach settlement concerning failed Altus bank

Federal bank regulators have reached a settlement with the Oklahoma City law firm that represented a failed Altus bank. The terms of agreement in U.S. District Court will remain secret until a final dismissal of the case is issued in June.

Newsok
Zeke Campfield, April 7, 2012

Federal bank regulators have reached a settlement with the Oklahoma City law firm that represented a failed Altus bank.

U.S. District Court records indicate Federal Deposit Insurance Corporation settled April 3 with the law firm Andrews Davis and two employees, D. Joe Rockett and Matthew H. Griffith.

FDIC filed the lawsuit in October 2011 in an attempt to recover outstanding loans that contributed to a takeover of First State Bank of Altus in 2009.

Details about the settlement will not be released until the case is closed, an FDIC spokesman said.

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.

FDIC alleged in its suit that 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 Don Anderson.

Oklahoma State Banking Commissioner cited an "exhaustion of capital funds as a result of significant loan losses" for the state takeover of the bank.

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