After four of Eastern Livestock LLC’s former top executives pleaded guilty to falsely inflating the balances of bank accounts, a Virginia bank is suing the brokerage company’s bank, claiming they knew of the fraud practices.
First Bank & Trust Co., a Virginia bank who had a lending relationship with one of the guilty Eastern Livestock executives, claims Fifth Third Bancorp knew its commercial client was committing fraud as early as 2009. According to the Cincinnati Community Press, the lawsuit says Fifth Third was aware of the check-kiting activity and treated six-figure transactions as short-term loans.
Fifth Third froze Eastern Livestock’s account when cattle valued at $800,000 were purchased with non-existant funds.
First Bank says Fifth Third took some of its money after the cattle brokerage’s bank accounts were frozen.
For more information read Cattlemen start receiving payment from Eastern Livestock.