Monday, April 23, 2012

Prominent Hendry Businessmen Sued By FDIC

Pat Langford And "Bo" Davidson Sued By Feds Over Bank Irregularities

LABELLE, FL.-- The Federal Deposit Insurance Corp filed a multi-million dollar lawsuit March 13th against the former officers of the Florida Community Bank, including three prominent LaBelle businessmen.

The failed bank was taken over by the FDIC in January 2010, serving as a receiver of the assets of the bank.  Some $62 million was allegedly lost due to the bank directors' negligent operation of lending policies.

Hendry county businessmen Beauford E. Davidson, Patrick B. Langford, and Bernard T. Rasmussen are defendants in the case along with other former directors Jon R. Olliff, James W. O'Quinn, and Daniel G. Rosbough. Former bank president and CEO Stephen L. Price is also charged, all accused of being "grossly negligent" and "reckless" in operating the bank.

Davidson, long-time LaBelle dry cleaner store owner and Langford, co-owner of widely-advertised car and truck dealer Langford Ford. Davidson was a former Hendry School Board member for many years, and Langford a current Board Member has served even longer. 

Davidson, Langford, and Rasmussen have all been associated with the Florida Community Bank as directors for decades. The bank had it's beginning days in 1962 as the Hendry County Bank with the late founder, Kenneth J. Curtis, and Lewis J. Nobles, Jr., two of the original directors.

Rasmussen is a director of the Barron Free Library, Inc., the public library in LaBelle.

Daniel Rosbough owns an Immokalee fruit company and had interests in various failed groves and distributing and shipping concerns.

Olliff and Price were officers of the defunct Tri-County Community Bank of Lehigh Acres. Olliff, a dentist, is a director of Community Health Association, Inc., in Lehigh Acres. O'Quinn owns Collins Plaza LLC and owned a failed investment business and closed Immokalee area farming companies. 

Among the problem loans overseen by the directors and cited by the FDIC were a $6 million loan to Lake Eve Development in 2005 and 2006 with continued renewals and loan extensions calling for interest only payments, violating the bank's policies.

Other interest only loans were given to Bermont Loop LLC for $17.6 million even though the developer allegedly had no plans to develop the property, and therefore no way to pay the loan back from profits.

The FDIC says $25.6 million was lent to Arboretum Development LLC exceeding the bank's lending limit.

More Southwest Florida Online stories on Florida Community Bank

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