Huntington to Aggressively Contest Claims in Teleservices Ruling
MAR 22, 2011 - 11:00 am
In a statement, Huntington Bancshares said as reported late Friday, March 18, 2011, the U.S. Bankruptcy Court Western District of Michigan has ruled that its banking subsidiary Huntington National Bank may be required to pay up to $73 million to a trustee representing lenders defrauded by former Michigan-based Teleservices Group and a related company, Cyberco.
Huntington noted that no judgment fixing damages has been issued and that it plans to aggressively contest the claims of this complex case, which is subject to further proceedings. As this case continues to be litigated, no additional comments can be provided at this time.
In the ruling, the bankruptcy court found that Huntington National Bank must pay $73 million to a trustee representing a large group of lenders who were defrauded as a result of the bank’s failure to investigate potential improprieties in accepting payments from Teleservices and apply them to Cyberco’s loans. The court said, “Huntington had turned a blind eye to the mounting evidence that the transfers from Teleservices were not the collected Cyberco receivables as it had been led to believe.”
Previously on monitordaily.com over the years 2006-2008, which include a comprehensive list of restitution payees (December 21, 2006):
As the delta variant threatens to upend many back-to-the-office plans, we face ongoing remote and hybrid working conditions. What types of issues can arise when teams are working in a hybrid manner and how can we use technology to solve... read more
The first thing you see when you walk through the door of Auxilior Capital Partners’ office is the company’s logo, which features a scarlet prancing bull in the center of a cobalt shield, flanked by a pair of crossed swords,... read more