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BankAtlantic Bancorp Inc. in Fort Lauderdale, Fla., said in its annual report that mounting legal problems could have an adverse effect on its financial results.
April 5
The Securities and Exchange Commission has
The SEC filed a complaint Wednesday against the $3.7 billion-asset BankAtlantic and Alan Levan, who is also the company's chairman. The lawsuit, filed in the U.S. District Court for the Southern District of Florida, accused BankAtlantic and Levan of hiding "the deteriorating state of a large portion" of the company's commercial residential loan portfolio in 2007. The lawsuit also claimed that the Ft. Lauderdale company and Levan committed accounting fraud by improperly recording loans that they were trying to sell in late 2007 to make it look like they were minimizing losses.
BankAtlantic
The SEC is seeking financial penalties and permanent injunctive relief against BankAtlantic and Levan. The lawsuit also seek to ban Levan from being an officer and director of any public company.