FDIC seeks $11.9M from former director of failed (VA) bank

http://hamptonroads.com/2013/11/fdic-seeks-119m-former-director-failed-bank



FDIC seeks $11.9M from former director of failed bank
By Tim McGlone
The Virginian-Pilot
© November 30, 2013

NORFOLK

Local lawyer Richard Tavss, a former director and chairman of Bank of the Commonwealth, is accused in a lawsuit of gross negligence and conflicts of interest in handling loans to several of the bank's troubled borrowers.

Tavss, president and owner of the Tavss Fletcher law firm in Norfolk, was a longtime director of the bank and its parent, Commonwealth Bankshares, and was one of its largest shareholders.

Following the bank's failure in September 2011, the Federal Deposit Insurance Corp. stepped in as receiver and has attempted to recover a reported $334 million in losses.

The FDIC sent Tavss a letter in February demanding $11.9 million in repayment of bad loans Tavss signed off on while serving on the bank's board and its loan committee.