NORFOLK, Va. (AP) — A lawyer, his Norfolk law firm and their insurance company have settled allegations of gross negligence and conflicts of interest stemming from a bank collapse.
Under the settlement, attorney Richard Tavss of Virginia Beach, the law firm Tavss Fletcher, and Minnesota Lawyers Mutual Insurance Co agreed to pay a $1 million penalty to banking regulators.
The Virginian-Pilot (http://bit.ly/1rgf9dX ) reports that the Federal Deposit Insurance Corp. released a copy of the settlement agreement last week after the penalty was paid.
Tavss denied the allegations in court filings.
The FDIC had alleged that Tavss and the law firm closed on loans while knowing that the Bank of the Commonwealth’s board of directors hadn’t approved them.
The bank collapsed in September 2011.
___
Information from: The Virginian-Pilot, http://pilotonline.com
Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
