Litigation Support

The diverse experience of our management team is illustrated by the following representative assignments:

FDIC Lawsuits Against Directors and Officers of Failed Banks. We were engaged by a number of law firms supporting the Federal Deposit Insurance Corporation (“FDIC", as Receiver) in 26 separate legal actions against former officers and directors of failed banks located throughout the U.S. We reviewed certain charged-off loans and advised the FDIC as to whether the conduct of officers and directors in approving such loans was negligent and/or reckless. We provided written reports and court-room testimony.


Commercial Construction Finance. Retained by the U.S. Department of Justice, a Bank Experts' principal provided testimony involving the U.S. Department of Veterans Affairs' ("VA") award of a contract to a developer for construction of a $65 million VA health care center. Financing was to be provided by a major bank and a privately owned mezzanine lender. After construction started, the VA terminated the construction contract because of the developer's alleged fraud in the procurement process. Expert testimony included opinions on the parties' adherence to generally accepted commercial lending standards and practices.

Major Bankruptcies. We provided expert services in the Enron and Parmalat fraud and bankruptcy cases. Services included providing forensic investigation as well as written reports and testimony at deposition and at trial concerning credit process issues, syndication practices and corporate looting.


"Permanent" Commercial Mortgage Refinancing. A Bank Experts’ principal provided consultation and an expert report in litigation involving refinancing a permanent mortgage of more than $15 million. The lender's allegedly unreasonable delays in processing and approving the refinancing purportedly caused the borrower to incur substantial late fees and other losses. The expert report expressed opinions on whether the parties’ conduct was consistent with generally accepted commercial lending standards and whether the lender employed predatory lending practices.

Commercial Construction Finance. Consultation and a written report were provided in support of a bank’s position that it had no liability to subcontractors in a multi-million-dollar construction project where the bank’s borrower, the general contractor, filed Chapter XI before the project was completed.

Branch Banking Operations, Overdraft Lending, Fraud. Representing several major lending institutions, three NYC law firms retained a Bank Experts' principal to provide consulting support, a written report and jury trial testimony in a $75 million action against a mortgage banking company and a regional bank. The case involved fraud, bank operations, management, and credit policies and practices.


Alleged Misconduct by Board and Management. A financial institution lost approximately $5 million allegedly as a result of actions and inactions of senior management and board members in making certain loan and other financial commitments. In the financial institution’s lawsuit against several former senior executives, a Bank Experts' principal provided testimony as to whether the conduct of board members and senior management involved negligence, recklessness and/or poor judgment.

Underwriting and Due Diligence. This $500 million case involved fraud by a commercial leasing company that sold leased equipment pools to 19 banks. The pools were credit-enhanced by surety bonds issued by five insurance companies. A Bank Experts principal provided an expert opinion and testimony as to whether the banks performed proper due diligence and adhered to accepted standards of credit analysis, policy and procedure.

Multi-family Residential Finance. We were retained by counsel defending a multi-property residential mortgagor against foreclosure and damages alleged by the trustee of a $1 billion securitized mortgage pool. Issues included documentation deficiencies and fraudulent practices of the mortgage broker.

International Corporate Funding. One of the Firm’s principals provided a report and testimony before the International Commission for the Settlement of Investment Disputes (ICSID) in support of a $300 million claim brought by a global corporation against an emerging-market sovereign state. Issues included handling of offshore funding of local subsidiaries after the sovereign state imposed regulations effectively bankrupting the local companies.

Derivatives Litigation. A Bank Experts Senior Consultant provided transaction analysis and negotiating assistance for a counterparty's defense contributing to a reduction of almost $9 million in the final settlement of early termination costs on an interest rate swap.

Online Banking, Branch Banking Operations. We have been retained in numerous cases to provide consultation, reports and testimony involving Internet frauds, branch banking operations, check clearing and funds availability.