First Sound Bank Seeks Delay in Puget Sound Leasing Award



The Seattle Times is reporting that a verdict by a jury requires First Sound Bank to pay $3.5 million to the former owners of Puget Sound Leasing in a suit arising from a wrongful termination. In a separate part of the suit, the jury awarded the bank $1.2 million, resulting from a suit brought against the former owners for misrepresentation and failing to disclose accounting irregularities.

First Sound Bank acquired Puget Sound Leasing in March 2008 and subsequently sued its owners, Richard Secord and Louis Secord for fraud in connection with the acquisition. The bank alleged the defendants violated federal and state securities laws by misrepresenting the extent to which the leases they sold to First Sound were delinquent, and by failing to disclose accounting irregularities, caused the leasing company to appear more profitable than it was.

According to the Times report, the bank asked a federal judge to delay finalizing the jury’s $2.3 million verdict because it would weaken its financial condition. The bank is currently under scrutiny by the FDIC for low capital levels and is seeking a delay until the court resolves several post-trial issues, including whether the bank also owes substantial sums in attorney’s fees.

To link to full text of the Seattle Times story, click here.


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