SV Bankers-UPDATE 2

Sonoma Valley Bank President Sean Cutting aka "The Cookie Monster"
Sonoma Valley Bank President Sean Cutting aka "The Cookie Monster"
So the defendants, Switzer, Cutting and Melland appear to have failed on their motions to dismiss because a case management conference has been filed on Judge Seeborg's schedule for April 17 at 10:00 am.

It was always believed this tactic stood no chance.

Two Federal Madjlessi cases still moving forward (IRS & Fraud) plus a California/Marin County Insurance Fraud trial date set for October.

On March 13, 2014 the Sonoma Valley Bankers, Switzer, Cutting and Melland, will attempt to wrest themselves from the FDIC's iron grip...and a $12 Million federal lawsuit by arguing their motions to dismiss.

Fat Chance.

Their actions were purposeful, egregious and a direct outcome of a strategy by the Bank's Board of Directors to change officer compensation. This encouraged everyone from loan officers to executives who elevated these loan requests to the Directors' loan approval committee to build the commercial loan portfolio by paying for volume increases according to the bank Directors' new strategy.

It is notable that Bank Directors Marino and Nelson, who complained openly about the newly proposed risky compensation strategy, all of a sudden found themselves without seats at the Directors table in an acrimonious game of musical chairs.

Whatever the rationale or profit motive it represented a dangerous change to a sound and conservative strategy in place for years to that point in time.

While leading everyone to believe their business was "Sonoma-centric" they were loaning most of the bank's assets to a shady and proven crook for real estate scams in Petaluma and Santa Rosa, etc... .

The last straw for the FDIC appeared to stem from giving all of the US Treasury TARP money, $8.63 Million, to Madjlessi and his straw borrower/buyer.

"When they pass the cookie jar, you take a cookie."

-Sonoma Valley Bank President Sean Cutting

Ralph Hutchinson March 07, 2014 at 10:04 AM
Gifts from borrowers was the norm investments in Melland's Fuerza energy drink, boat rides, jet rides to Reno Tahoe or Vegas. The culture if corruption and conflicts if interest was just the way things were done. The Directors were briefed but never filed Suspicious Activity Reports required by law. Instead they did Melland a favor two home loans after the fired him. No Morals no Character. Sick.
Ralph Hutchinson March 27, 2014 at 02:20 PM
Cutting got the nickname "The Cookie Monster" because of the quote he gave the papers a few months before the banks failure. When discussing why the bank borrowed $8.6 million from the Treasury TARP bailout program when many shareholders like Moreno said they didn't need it Cutting said..."When they pass the cookie jar, you take a cookie." But he knew full well the Marin Developer loans from Madjlessi we all nonperforming and/or failing as did all the other Bank and Holding Company Board of Directors (Switzer, Nicholas, Brangham, Downing, Pistole, Hitchcock, Sangiacomo, Page)


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