An example of a lack of government oversight. Why isn't this law suit news?
On May 23, 2012, the FDIC as receiver for Innovative Bank of Oakland, California, filed a civil suit in US District Court, Northern District, Federal Deposit Insurance Corporation v. Hong et al, against Innovative Banks’ former directors for "Breach of Fiduciary Duty, Gross Negligence and Fraud".
SBA loan fraud goes largely unnoticed in comparison to the foreclosure crisis and the wave of student loan defaults. The defendants in this law suit were allowed to do as they pleased for far too long. Instead of preventing losses covered by the US tax payers, the FDIC has to sue to recover 7.1 million dollars. I was one of Innovative Bank's hapless borrowers. Innovative loan managers pulled a forced "technical default" on me by refusing to apply my payments to my loan. They were a failing bank and they wanted the SBA loan guaranty payment from the government not monthly payment from the borrowers as part of their scam. I received a stunning lack of intervention from officials at the Western Region, SBA, while attempting to inform them of unethical and possibly illegal behavior by officials of SBA lender Innovative Bank. The SBA took the word of the privileged, wealthy officers of the bank over that of a small entrepreneur of modest means and had the audacity to tell me that my claims of fraud by Innovative Bank were groundless without even a token investigation of the circumstances. It is disgraceful that a U.S. citizen would be treated in this manner by employees of the Federal government while seeking assistance with a financial institution. I am still in a struggle to clear my credit history due to the fraud. The 1% versus the 99%
Read complaint here - http://clients.oakbridgeins.com/...