Lawsuit in Virginia

Introduction

There are many lawsuits that have been filed for companies related to misconduct illegal actions, fraud and other business related actions. This also happened in Virginia as a bank in Virginia filed a law suit against another bank for fraud, misconduct, illegal aiding of a livestock company in Virginia. The livestock company has one of the biggest cattle farms in the country.

Discussion

Fifth third bank in Virginia has filed for a law suit for the involvement in a check kiting scheme. This was done from a bank named First bank and trust Co. in the Hamilton county court. According to the lawsuit it claimed that fifth third bank had known about and was taking part in the schemes that were used by any one of the banks borrowers named New Albany, Ind based Eastern livestock. First bank is a great agricultural lender that has done great business with the eastern livestock and is not looking for millions of dollars for the damages and a trail.

According to the lawsuit, first bank claims that the CEO of the eastern livestock Thomas Gibson had told the bank examiners in the year of 2009 that he had cycled various checks from himself and the company with a six digit figure. Officially he told Fifth third band that the money was as a short term loan. The bank according to his statement had treated those transactions as loans on his word even though the amount of transactions was in millions and never was resulted for putting any cash into business. First bank claimed that fifth third knew about the CEO of eastern livestock was taking advantage of the float in the bank system by the cycling of the cherubs now and then, and with this eastern livestock was generating heavy amount of revenues. The lawsuit also claimed that fifth third had decided in the year 2009 to be park in the check-kiting scheme and included the credit officers involvement by acknowledging what eastern livestock was doing in writing and saying that it was in the interest of fifth third to look through other ways.

Due to this the eastern livestock was able to generate around two million dollars per year for fifth third. This was also described in the lawsuit. First bank also claimed that a sole auditor had estimated the loans of fifth third to eastern livestock as being unsatisfying and said that it ...