On Monday, June 4, 2012, Judge Andrew J. Guilford of the
United States District Court ordered the dismissal of the case first filed by
FVAB back in 2008. The case much publicized
by the Orange County Register http://www.ocregister.com/articles/madani-279476-bank-first.html
was filed by FVAB in 2008 as a diversion
and an attempt to blame others for its officers and directors lack of competence, its fail lending practices and failure to comply with banking regulations. The fact which resulted in the California
Department of Financial Institutions takeover of FVAB and appointing FDIC as
the receiver of the bank in November of 2010 after a multitude of Cease and
Desists and Consent Orders against the bank since it first opened its doors in 2005.
The settlement agreement which was accepted by the Judge
dismissed the consolidated case with prejudice.
The legal team representing FVAB collected more than $700,000 in legal
fees from FVAB’s insurance company while losing the case. At the end FVAB’s insurance company paid the
defendants over $1.5 million to settle the case in an effort to avoid potential larger losses.
The case against all the defendants including Masih Madani,
David Kerlin, Terry Roddy, OPUS Financials, and Amerinet was dismissed with prejudice. Although this is a vindication for the
defendants, in reality it is somewhat bitter sweet. The defendants have been living with the
negative publicity hanging over their heads for the last four years. Even though the defendants were
never proven guilty in a court, they were guilty and were punished until
proven innocent! Although the law allows
for the defendants to file claims against FVAB for the false accusations, FVAB
no longer exists as an entity, so there is no one to go after.
Meanwhile, FVAB officers and directors continued to collect fat
paychecks for the more than two years the case was pending before the banks
failure.
The whereabouts of the banks officers and directors are unknown.
This further proves how broken the American legal system not to mention the banking system are.
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