As Erpenbeck scandal exploded in to the public seen in March 2001, and At an emergency meeting that month, the board voted to fire Finnan and Menne. And property valuation cost headings getting some data about full house to see that its seen as expense in the mass zone field.
Although he listed JAMS on numerous financial statements in the late 1990s and early 2000s, Finnan did so without explanation to the board, evading detection, according to bank attorneys.When the smoke cleared, the participating banks Finnan and Menne drew into the quagmire were still owed $23.7 million. Erpenbeck Co., its affiliates and family members owed the bank more than $8 million.
The mountain of debt and the sure prospect of legal liability for allowing Erpenbeck to deposit more than $25 million in stolen checks into accounts at Peoples Bank was too much for it to bear. In July 2002, the bank sold its assets to Bank of Kentucky, leaving only the bad loans and the legal liability for the bank’s shell corporation to handle.
Most of the legal battles have been fought, with the bank paying out most of a $16.8 million settlement to homeowners who were saddled with mortgages that Erpenbeck failed to pay off. A shareholder’s lawsuit is pending as is a subcontractor’s class-action lawsuit.
Storm, the Peoples Bank attorney, said Finnan and Menne acted out of self-interest, not the bank’s. “They were acting outside of their authority to protect their business relationship with Bill Erpenbeck,” she said. E.J. Walbourn, assistant U.S. attorney in the Eastern District of Kentucky, led the prosecution of Finnan and Menne.