Court: Bank Should Have Seen Red Flags

GRAND RAPIDS (WWJ) – A judge in Grand Rapids says Huntington Bank could owe as much as $73 million in a bankruptcy case related to fraud at a high-tech company.

Huntington lent money to Grand Rapids-based CyberNET. Bankruptcy Judge Jeffrey Hughes says the bank should have known that CyberNET and its affiliates were committing fraud and raised a flag about the problems.

A bankruptcy trustee is trying to recover millions of dollars for finance companies that had lent money to CyberNET for computer servers and other equipment.

The money instead was used for a lavish lifestyle enjoyed by owner Barton Watson and his wife.

Huntington Bank is planning to appeal.

Comments

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Detroit

Best 4th Of July Concerts In Metro DetroitStaying home this weekend? Celebrate the 4th of July by rocking out at one of these shows.
Hump Day Drinks: 8 Cheery Cocktail RecipesNow that you've made it through half the work week, it's time to celebrate!

Watch & Listen