Jury Clears Former Bank CEO in SEC Case Over Soured Real Estate Loans
May 08 2017 - 5:31PM
Dow Jones News
By Dave Michaels
WASHINGTON -- A federal jury in Miami on Monday dismissed civil
claims against an executive who once operated one of Florida's
largest banks, marking the end of a long-running case that turned
on allegations of misconduct in the run-up to the housing
crisis.
The verdict cleared Alan Levan and BBX Capital Corp., a company
that once operated as BankAtlantic Bancorp Inc. before the bank
business was sold to BB&T Corp. in 2011. The Securities and
Exchange Commission alleged Mr. Levan misled investors during a
July 2007 analyst call about trouble in the bank's loan portfolio.
The SEC also claimed the bank manipulated how it valued some loans,
allowing it report a lower pretax loss for the year. The jury found
in favor of Mr. Levan and BBX on both counts.
Mr. Levan had predicted he would be exonerated after an
appellate court last year faulted how a judge handled an earlier
trial against him. The 2014 trial ended in a two-year ban on Mr.
Levan from serving as an officer or director of a public company.
The 11th U.S. Circuit Court of Appeals in Atlanta vacated that
outcome and ordered a new trial on the few remaining claims in the
SEC's case.
An SEC spokesman didn't respond to a request for comment.
In an interview, Mr. Levan said he was relieved by the outcome,
noting that he had refused to settle the case because he thought he
would prevail in court. The bank's auditor, PwC, testified in favor
of the accounting treatment for the loans, and the bank's
disclosures were shown to be fair and accurate, he said.
The SEC "has to be embarrassed," he said. "I was fighting on
principle. Your heart has to go out to all of the people that the
SEC forces into settlements because they don't have the financial
wherewithal to take them on."
Write to Dave Michaels at dave.michaels@wsj.com
(END) Dow Jones Newswires
May 08, 2017 17:16 ET (21:16 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
BBX Capital (NYSE:BBX)
Historical Stock Chart
From Aug 2024 to Sep 2024
BBX Capital (NYSE:BBX)
Historical Stock Chart
From Sep 2023 to Sep 2024