Jack Murphy, Senate banking chairman, named in federal suit over bank failure

My business colleagues at ajc.com have a shocker:

Federal banking regulators announced on Tuesday a lawsuit against eight former insiders of a failed Alpharetta bank – one of them a state senator who was just named chairman of the Senate Banking Committee.

State Sen. Jack S. Murphy, R-Cumming, is among the former Integrity Bank executives or directors accused by FDICl regulators of gross negligence and various breaches of fiduciary duty related to a series of loans made from 2005 to 2007. The FDIC seeks damages of “over $70 million.”

Former state senator Clint Day was also named in the suit. See 77 pages of documents.

- By Jim Galloway, Political Insider

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53 comments Add your comment

[...] The AJC’s business reporters and Jim Galloway have teamed up to bring us this news.  Federal banking regulators have sued 8 “insiders” of the failed Integrity Bank of Alpharetta of “gross negligence and various breaches of fiduciary duty.”  The FDIC is seeking damages of over $70 Million. [...]

Georgian

January 18th, 2011
5:27 pm

Wow. Obey the “rule of law” on immigration, but I guess banking laws don’t apply to him?

Albert

January 18th, 2011
5:50 pm

He should not be banking and finance chairman. The Committee on Assignments should revisit this assignment and appoint a new chairman. Who is the Vice-Chairman?

GaBlue

January 18th, 2011
5:56 pm

“Personal Responsibility” may be the GOP’s mantra, but that doesn’t mean they apply it to themselves or go mixing it up with business, all willy nilly. Federal agencies like the FDIC exist to be fleeced and exploited by the people who oppose them. Right?

TrickleDownStupid

January 18th, 2011
5:58 pm

I expect Murphy to say he did absolutely nothing wrong and that it’s a democratic conspiracy and Obama’s fault.

Or, he will say people who should not have qualified for loans caused this mess and the government forced him to comply and give out loan to minorities.

Or the bank failed due to the economy, so what he did in 2006, 2007; were not of consequence.

Excuses for the Trickle Down Stupid.

TrickleDownStupid

January 18th, 2011
6:00 pm

$70 million, I would tell the FDIC not to hold their breath. I’m sure the money has been hidden or placed in a Swiss bank.

GaBlue

January 18th, 2011
6:08 pm

TrickleDownStupid,

Don’t be so cynical, man! That money might not be hidden or in a Swiss bank. It might not even be stashed in the Caymans! Why… it may well have been invested, and is right now creating jobs — in another country!

jconservative

January 18th, 2011
6:32 pm

Just great!

The new Chairman of the Senate Banking Committee is “accused by FDICl regulators of gross negligence and various breaches of fiduciary duty related to a series of loans made from 2005 to 2007. The FDIC seeks damages of “over $70 million.”

Only in Georgia!!!!!!!!!!!!

Double Zero Eight

January 18th, 2011
6:32 pm

Looks like the fox was in the hen house.
A previous blogger was right….he will
blame this on Obama. I wonder what
Deal and Ralston will do and say!

khc

January 18th, 2011
6:34 pm

and no bid contract for legal services for sandy springs….do as i say, not as i do

pn

January 18th, 2011
6:44 pm

Look at some of the other legislators while you’re at it, FDIC (and FBI), and some ex-legislators as well. We’ve had 8+ years of a total free-for-all in this state.

Alabama Communist

January 18th, 2011
6:50 pm

No doubt another reason to ban Republicans from owning Banks that give out bad loans to your buddies and than blame it on the fail federal reserve policy of the Democrats……….

eatmotacos

January 18th, 2011
6:55 pm

Why is this even news in Georgia? We have the dumbest electorate in the free world.

Stupid GA Voter

January 18th, 2011
6:56 pm

Why is this any worse than what our governor did BEFORE he got elected? They both basically stole money, and you all voted for him. So why the outrage now?

Stupid GA Voter

January 18th, 2011
6:58 pm

This just in… Jack Murphy has been found guilty, plans to run for Governor in 4 years to re-coup his losses. He’ll win too!

Thomas

January 18th, 2011
7:18 pm

This is another example of Ethics in State Government. New Chairman of the Senate Banking Committee? AMAZING! What a joke.

666

January 18th, 2011
7:18 pm

The Devil made them do it. Why would we expect anything less from these people. Let’s elect more of them.

chuck padden

January 18th, 2011
7:49 pm

Looks qualified to me…statewide office is a mandate.

khc

January 18th, 2011
7:51 pm

how does bank lose money given this video:

http://www.youtube.com/user/fiercefreeleancer

As I See It

January 18th, 2011
8:01 pm

Well, I can’t say that I’m impressed with the “transparency,” intellect or fiscal management of our lawmakers. All which have been around quite a while.

Could it be with Sen. Chip Rogers (IRS legal troubles)? Or maybe it was “invested” in the private Stewart Corrections Facility in Lumpkin GA (owned by Corrections Corp.) that processes undocumented aliens.

Look at the YouTube Video on the Immigration Hearings. Watching the hearings clips. I was dismayed to learn that our lawmakers (say they) BELIEVE:

1) That the 9-11 actions were taken by ILLEGAL aliens. (FALSE they were here LEGALLY on Student Visas.)
2) The Civil War had NOTHING to do with slavery. (The Union thought it did.)
3) That one alien will bring in over 270 others (FALSE: http://tinyurl.com/6admvlp)

The list goes on…

Come next election cycle, can we pick our elected officials from winners of “Are You Smarter than a 5th Grader?” Rather than Jay Leno’s “People on the Street.” Hmm – guess there could be some controversy there too.

Chris

January 18th, 2011
8:27 pm

Well Georgia, this is exactly what you voted for. I hope it was worth it to “get back at Obama.” Have fun while your state becomes the new Mississippi, and I’m sure even then you guys will continue to vote for these morons because they have “family values.” And this is just the beginning…

Aquagirl

January 18th, 2011
8:38 pm

I hope Jim is being sarcastic when describing this story as a “shocker.” Anyone surprised doesn’t have an IQ over room temp.

And the bit about the 10 Commandments posted in every bank would be pure comedy gold if those jeebus-hugging hardcore Republican voters didn’t expect a bailout courtesy of the taxpayers. They’ll complain about big gub’ment while voting for the crooks who rip them off. Why don’t they ask Jesus for their money instead of depending on the evil FDIC?

tom mitchell

January 18th, 2011
8:50 pm

Georgia is now a proud new Red State!!!…maybe red-faced would be a better description.

Karl Marx

January 18th, 2011
9:18 pm

This guy should go to Jail. For a long time.

Ramguy

January 18th, 2011
9:18 pm

Yawn…..another Republican scandal….the Ga electorate would elect to him to any office he ran for if there was an election tomorrow…and then say it was just more liberal AJC bias. This state is getting what it has coming to it.

SpaceyG on Twitter

January 18th, 2011
9:42 pm

If any of these clowns in state office were decent businessmen they wouldn’t be in GA state office. They’d have real jobs with real money.

Drooly

January 18th, 2011
9:45 pm

We are sure that the story about GALEO Chairman and former state senator Sam Zamarripa’s United Americas Bank – you know, the one that was one of the first to begin making mortgage loans to illegals – going belly up last moth was lost in the mail.

Congratulations Mr. Chairman

January 18th, 2011
9:45 pm

[...] member of the Board of Directors for the now defunct Integrity Bank. The same Jack Murphy that just got served with a 70 million dollar lawsuit, courtesy of the FDIC, for his awesome stewardship of [...]

td

January 18th, 2011
9:55 pm

I am a proud conservative and I am writing my Representative and Senator and asking for him to at least be removed from the Banking committee during the duration of this action and if found liable then be kicked out of the Senate and the Republican party. This is a individual thing and anyone found guilty has broached the voters confidence and deserves to be kicked out of office.

professional skeptic

January 18th, 2011
10:19 pm

Another day, another crook elected to office in Georgia.

Too many crooks spoiling Georgia’s soup.

Cutty

January 18th, 2011
11:23 pm

Who needs regulations?

another comment

January 18th, 2011
11:41 pm

This is no shocker! I called Sally Yates and then was given the FBI to speak to months ago. There is also Wilmont Williams of Homes by Williamscraft and his two daughters. They had at least 1.5 million in loans with Integrity in one subdivision that I know of. They did exchanges of the land between their closely held companies and ran up the land value, taking out all their cash. They put down at least 4 banks in one Subdivision. Wilmont, is the brother of John Williams of Post Property fame. Who doesn’t think they are politically connected.

another comment

January 18th, 2011
11:43 pm

Tommy Davis from down in Columbus has parlayed his 2 year failed stint on the Ga Legistlature as a Republican into a career being on Bank Boards. If you have ever met this dimwitted bully as I have you know how much trouble this state is in. This guy lost after two years as a Republican in Ga. But hell he was on the Banking Committee, so now he goes around bragging that he serves on this bank board and bank board.

Question Man

January 19th, 2011
12:05 am

Can you say “resignation?”

Karl Marx

January 19th, 2011
6:34 am

Boy if you run as a Republican in this state you have to be a fraud, crook, or incompetent. Rogers, Deal, and now Murphy way to go bozos.

khc

January 19th, 2011
7:11 am

seems like politicians of both parties look out for themselves by catering to the big boys, usually big business, both locally and nationally…

i would venture moderate citizens in both parties could work together to set our state and country back on a sustainable path, if we could get rid of these self serving pols.

but overcoming big money be unions or business will be tough….

Double Zero Eight

January 19th, 2011
7:13 am

If Murphy was a democrat, Ralston would
have already called a press conference
to demand that he resign from the banking
committee immediately. Usually, the ones living
in glass houses are the same individuals that
are throwing the most stones. Does anyone
really believe the Republicans will pass meaningful
ethics reform legislation? Where is the outrage
from the tea party? According to Republicans,
most of Georgia’s problems are a result of the federal
government and Obama. I guess the “economy made
Murphy do it”.

BACK OFF BUDDY

January 19th, 2011
7:16 am

Hey stop the negativity. Gov. No Deal had to have somebody in this corner to help him with his financial problems. Who else can fill that need except another crook. Get ready GA. I am sure there is more to come in the next 4 years. Karen doesn”t look so bad now. And Gov No Deal has only been in office for a week. Did he even know it was snowing?

Dumbo

January 19th, 2011
8:21 am

Bad Deal….please talk with Purina Ralston and appoint some people that aren’t Ethically Challenged. Is it me or does it seem like everyother politican in Georgia is either corrupt or corruptable.
But what the heck, we did elect Bad Deal as governor, and this grip is from a consrevative independent. Yikes!!!!!!!!!!

JD

January 19th, 2011
8:57 am

This proves we have too many regulations! These good Republicans could be out creating a better economy instead of defending themselves against such charges! Capitalism does not cowtow to ethical concerns – such things cost money!

khc

January 19th, 2011
9:00 am

i think george carlin says it all in this clip if you can excuse the profanity:

http://www.youtube.com/watch?v=acLW1vFO-2Q

Forlorn Republican

January 19th, 2011
9:11 am

@another comment- Hopefully Ms. Yates is too busy working on the allegations against our Governor to return your call!

deegee

January 19th, 2011
9:28 am

Who didn’t see this coming? Whenever someone makes the “do business with me because I’m a good christian” pitch you better grab your wallet and run like the devil’s chasing you.

“Integrity, which touted itself as a faith-based company and featured copies of the Ten Commandments in its branches, was founded in 2000.”

True Grits

January 19th, 2011
11:24 am

Is anyone surprised? The state legislature is riddled with characters like this. Anyone remember a few years ago when Ralston got busted for underpaying $400,000 to the IRS covering ten years of income taxes? There are others who’ve pulled similar stunts and managed to stay beneath the radar and out of the spotlight.

truth

January 19th, 2011
11:45 am

So, true, True Grits. Yet, we keep electing these morally deficit buffoons. Why can’t the Georgia electorate think for themselves?

R.Lopez

January 19th, 2011
12:12 pm

Please suspend this man pending the outcome of the lawsuit. If found innocent, restate him and go on with life.

GUILTY PLEA

January 19th, 2011
2:37 pm

another comment

January 19th, 2011
6:37 pm

@Forlorn Republican, sorry Sally Yates office returned my call months ago, the same day I called, had the FBI talk to me, along with the FDIC investigators. This was months ago when you all thought that the OX was your candidate. All the crooked Banksters and builder developers are going down, because, their are public records which show how they cooked the books. There are also plenty of innocent homeowners who have now lost 25-50% of the value of our homes because of the outright theft committed by these insiders.

Wilmont Williams is just as bad as Lee Najjar aka Big Pappa. Wilmont thinks he is sitting fat and in the money in his $3.2 million dollar house at Reynods Plantation. But he is not, you can not rip off people with your two daugters and get away with it because you are politically connected.

Lost Money

January 19th, 2011
9:16 pm

As an investor in Integrity Bank, losing $100,000, I question the Integrity of the committee that would choose Jack Murphy to head the Banking Committee and the Integrity of Jack Murphy for accepting. He knew this lawsuit was happening.

Get Involved

January 19th, 2011
9:46 pm

The 2009 movie, “Capitalism – A Love Story” is currently being shown on Starz (TV). It outlines part of the BANKING & MORTGAGE issue including “deals” with politicians.

Those who parrot the rhetoric of sound bites on issues & their solutions, those unthinking people who blindly support their “party” – no matter how bad the decisions and those “Good Christians” who spew hate like the “Devil” make me want to flee. But it has made me more aware and more involved while scouting another state for a different address. Until HONEST people step up, ask questions and VERIFY the answers as informed, factual and truthful (even if the one giving testimony swore on a Bible) we will still be burdened with this issue.