FDIC as Receiver for City Bank vs. Conrad D. Hanson and ...
FDIC as Receiver for City Bank vs. Conrad D. Hanson and ...
FDIC as Receiver for City Bank vs. Conrad D. Hanson and ...
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C<strong>as</strong>e 2:13-cv-00671 Document 1 Filed 04/15/13 Page 10 of 97<br />
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recommendation are inappropriate <strong>for</strong> any re<strong>as</strong>on, I'M PREPARED TO STEP DOWN! If you<br />
want to negotiate compensation, I will hire an attorney if that gives you com<strong>for</strong>t in your ultimate<br />
decision to put the proper graphs in our proxy statement, etc." Then, he challenged the Board,<br />
"I'm <strong>as</strong>king each of you individually to also examine if you're com<strong>for</strong>table with my style . . .<br />
because it h<strong>as</strong> now worked <strong>for</strong> +/- 32 years. If you are of the opinion <strong>and</strong> uncom<strong>for</strong>table, some<br />
third party might take issue with the business of the bank, you also can resign. If the heat in the<br />
kitchen gets too hot, it might be best to get out of the kitchen."<br />
34. For 2006, 2007, <strong>and</strong> 2008, Sheehan received per<strong>for</strong>mance bonuses equal to<br />
$266,000, $316,000, <strong>and</strong> $71,000, respectively. These bonuses were in addition to Sheehan's<br />
b<strong>as</strong>e salary <strong>for</strong> that period, which equaled $158,108, $170,108, <strong>and</strong> $182,108, respectively.<br />
D. <strong>City</strong> <strong>Bank</strong>'s Loan Policy<br />
35. During the relevant time period, <strong>City</strong> <strong>Bank</strong>'s General Loan Policy (the "Loan<br />
Policy") provided st<strong>and</strong>ards that applied to all loans originated by <strong>City</strong> <strong>Bank</strong>. Periodically, the<br />
Board approved amendments to the Loan Policy. The version of the Loan Policy that w<strong>as</strong><br />
approved by the Board on or about November 10, 2004 (the "November 10, 2004 Loan Policy")<br />
is the earliest version of the Loan Policy that is relevant to this c<strong>as</strong>e. Subsequent amendments to<br />
the Loan Policy were made <strong>and</strong> approved by the Board on or about June 8, 2005, March 8, 2006<br />
(the "March 8, 2006 Loan Policy"), May 10, 2006, June 12, 2007, October 10, 2007 (the<br />
"October 10, 2007 Loan Policy"), January 9, 2008 (the "January 9, 2008 Loan Policy"), <strong>and</strong><br />
October 9, 2008 (the "October 9, 2008 Loan Policy"). References to Defendants' failures to<br />
en<strong>for</strong>ce, comply, or follow the st<strong>and</strong>ards or requirements in the Loan Policy are to the st<strong>and</strong>ards<br />
or requirements that were in effect at the time of Defendants' violation of the Loan Policy or<br />
their failure to en<strong>for</strong>ce the Loan Policy.<br />
36. The Loan Policy provided that a "loan comment memo ["Loan Memo"] must be<br />
completed in detail <strong>for</strong> every loan made over $50,000 . . ., signed by the lending officer, <strong>and</strong><br />
placed in the borrower's credit file."<br />
37. The November 10, 2004 Loan Policy provided maximum LTV ratios <strong>for</strong> real<br />
COMPLAINT - Page 10<br />
ATER WYNNE LLP<br />
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