Settlement of Fidelity Bond Claim
The firm settled a fidelity bond claim on behalf of a local bank. The claim arose from the actions of a bank officer and employee who failed to account for money loaned to bank customers and hid bad loans from other officers at the bank. Investigation of the claim involved cooperation with, among others, the State Banking Department of the State of Alabama, the Alabama Bureau of Investigation, and prosecutors in the criminal action against the bank officer. The bank had a total loss in excess of $1 million resulting from the bank officer’s actions. The firm presented the claim to its fidelity bond insurance company, and the firm successfully negotiated a settlement of the claim on behalf of the bank.