Nine of eleven high-ranking executives and board members of Superior Bank and its holding company have settled charged by the SEC based on their alleged involvement in various schemes designed to conceal the extent of loan losses experienced as the bank was faltering in the wake of the financial crisis. The defendants propped up Superior’s financial condition through straw borrowers, bogus appraisals, and insider deals, allowing the bank to avoid impairment and the reporting of ever-increasing allowances for loan and lease losses. As a result, Superior overstated its net income in public filings by 99 percent for 2009 and 50 percent for 2010. The settling defendants will pay at least $2.8 million collectively and are all permanently barred from serving as officers or directors of a public company. SEC
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