Sonoma Valley Bank shareholders are hoping to recover up to $20 million that was lost when the bank filed for bankruptcy last August, according to an article in Wednesday’s Press Democrat.
In an insurance claim filed this month, shareholders say bank employees did not do their due diligence when they loaned as much as $40 million to Bidjan Madjlessi, a Marin County real estate developer and previous owner of Petaluma’s .
The East Side apartme and residents complain of holes in ceilings and walls, broken windows and mold.
According to records, Madjlessi has defaulted on $35 million in loans. Claimants blame bank officers and directors for not properly checking the realtor’s background or the dozens of shell companies he created to apply for loans.
The group of shareholders also said they would file a class action lawsuit this week in Sonoma County Superior Court.
For more info, read the full article here.