SEC Sues BankAtlantic for Alleged Fraud

BankAtlantic Bancorp and CEO Alan B. Levan are charged with alleged fraudulent activity in a civil lawsuit filed by the Securities and Exchange Commission (SEC) on January 18, 2012 in Miami federal court.

The lawsuit alleges that investors were misled about the loan problems at the bank, according to a recent article in the South Florida Business Journal titled SEC Sues BankAtlantic Bancorp, CEO Levan for Alleged Fraud.

Accounting fraud is also alleged, including the improper recording of loans the bank was trying to sell in 2007. Losses that year were allegedly underestimated as a result of accounting “gimmicks.” Additionally, the SEC claims that the bank and Levan made misleading statements in SEC filings and earnings calls during 2007.

Financial penalties are being sought against the company and Levan.

If you held stock in BankAtlantic during the time period covered in the SEC lawsuit, contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq., to discuss your case.