UPDATED: IberiaBank Claims $3.6 Million Credit Fraud by Arkansas Client

by Gwen Moritz  on Wednesday, Jan. 21, 2009 2:17 pm  

· Only when the client's home was foreclosed upon in January by the holder of the first mortgage did Pulaski Bank begin to seriously question his or her creditworthiness. That's when it was discovered that the documentation of the securities used as collateral was fraudulent.

Hitting the Bottom Line

The company said the fraud affected its fourth quarter results by about 17 cents per share on an after-tax basis. In its quarterly report, the company said income available to common shareholders fell 21 percent to $7.9 million. That figure was down 9 percent from the third quarter.

The company also reported fully diluted earnings per share 58 cents, down 26 percent from the same quarter of 2007 and down 14 percent from the third quarter of 2008.

ArkansasBusiness.com will update this story.



Please read our comments policy before commenting.