The board of directors of a failed bank are being sued over millions of dollars in losses.
In a suit filed Monday in Federal Court, the Federal Deposit Insurance Corporation is demanding a jury trial against former board members of People's First Community Bank.
The suit claims the board is guilty of negligence and gross negligence regarding lending practices from 2005 until the bank failed in December of 2009. Hancock Bank of Mississippi took over the bank in 2009.
The FDIC specifically points to 11 loans that the bank's board of directors approved totaling ore than $77 million. The suit claims that those loans, among others, led to the downfall of the bank. Total losses for the bank when it was acquired by the FDIC was more than $726 million.
Named specifically in the lawsuit were former board members Greg Brudnicki, now the mayor of Panama City; Joe Chapman, who founded the bank; Henry Clayton Futrell; Phillip Griffitts, former Mayor of Panama City Beach; John Robert Middlemas; Rodney Morris; Raymond Powell, the former CEO of the bank andJohn Stephen Wilson.