SEC Charges Three Individuals in Multi-Million Dollar Scheme to Defraud Savings Banks and Their

SEC Charges Three Individuals in Multi-Million Dollar Scheme to Defraud Savings Banks and Their Depositors.
Washington, D.C., Sept. 24, 2007 - The Securities and Exchange Commission today charged a retired Indiana real estate entrepreneur and two of his relatives with securities fraud for defrauding savings banks and their depositors in connection with the banks" conversion from mutual to stock ownership. 'These defendants engaged in a calculated scheme to defraud savings banks and their depositors,' said Mark K. Schonfeld, Director of the SEC"s New York Regional Office. 'For more than a dozen years, the defendants lined their pockets with money that should have gone to legitimate depositors.' David Rosenfeld, Associate Director of the New York Regional Office, said, 'This action demonstrates the SEC"s ongoing commitment to rooting out fraud in connection with mutual bank IPOs.