Comfed Savings Files Suit Against 34 Former Employees
LOWELL, Mass. (AP) _ A Massachusetts thrift filed suit Monday against 34 former employees, claiming that widespread misconduct exacerbated the financial troubles of the struggling Comfed Savings Bank.
Among the defendants named in the suit were Raymond F. Miller Jr., who was ousted as bank president; and James G. Baldini, former president of Comfed Mortgage Co. Inc.
The suit filed in Middlesex Superior Court marks the latest development in Comfed’s battle for survival. Company Chairman Jack Zoeller said Comfed, like most banks in New England, ″has sustained substantial losses as a result of the downturn in the region’s real estate market.″
″However, we firmly believe that our loan losses were increased materially due to the misconduct of the individuals as alleged in this suit,″ Zoeller said in a statement.
The charges contained in the suit include intentional misconduct, mismanagement and fraud in the processing and approval of residential and commercial loans.
Comfed said it will seek to recover the amount of losses determined by the courts.
Miller was unavailable for comment Monday. Baldini said he could not respond to specific allegations since he had not seen the complaint.
But he added, ″I have done nothing wrong.″