FDIC sues former Winder banker

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Wednesday, August 31. 2011

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Former Winder banker Chris Maddox is being sued by the Federal Deposit Insurance Corp. for his alleged role in bringing down a national bank that his father helped found more than two decades ago.

In a federal lawsuit filed Aug. 22, the FDIC cites Maddox’s roles as both a member of the board of directors of Silverton Bank N.A. and as a member of an executive loan committee.

The suit claims the directors wasted millions of dollars on lavish spending and the loan committee approved millions of dollars in loans for developments without substantiating the credit worthiness of the borrowers or making sure the collateral for the loans was sufficient.

The 102-page suit was filed against 15 former directors, two former bank executives and two insurance companies and seeks to recover at least $71 million in losses that the FDIC sustained after the bank was closed in May 2009 by the Office of the Comptroller of the Currency.

The suit, which was filed in the U.S. District Court for the Northern District of Georgia, seeks to hold Maddox personally liable for his votes that led to $20.6 million in bank losses.

He is accused of participating in questionable spending decisions that included the 2007 purchase of a $3.5 million Falcon 20 airplane for the bank’s holding company and the $1.35 million purchase of a King Air airplane from the bank’s former president and CEO, and the decision to build a $3 million hangar to house the aircraft.

The lawsuit also attempts to hold Maddox liable for agreeing in 2006 to the construction of a “palatial” new bank headquarters “replete with 26 conference rooms” while Silverton still owed $2.47 million in lease payments on its existing office space.

For the full story, see the Aug. 31 issue of the Barrow Journal.

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#1 Jack Legg on 08/31/11 at 03:38 PM [Reply]

The peoples bank was a crooked entity that had tentacles reaching far and wide in north georgia.I was glad to see its failure and Im glad to see the prosecution of maddox.I know people who died destitute thanks to him and his bank and I hope they are watching. Its true what they say that the long arm of the law reaches all evildoers eventually.

#1.1 Jagg Ov on 08/31/11 at 08:36 PM [Reply]

Talk about defamatory material. I do hope you stick your nail-head up for public display, so it can get hammered. As it deserves to be.

#1.1.1 Jack Legg on 09/02/11 at 02:38 PM [Reply]

I hope they make him repay every dime he shot up a hogs ass, unless Ov wants to pay it for him.

#1.1.1.1 Anonymous on 09/02/11 at 03:42 PM [Reply]

You didn't address how you are too ignorant to distinguish between criminal and civil. If you want to debate issues, that's fine -- but at least try to maintain a scintilla of logic. To reiterate, you cheered the "prosecution" of Maddox. Please defend that choice of word. Surely a candidate for public office can do that.

#1.1.1.1.1 Jack Legg on 09/02/11 at 04:12 PM [Reply]

Call it what you want to boy, but if the feds is coming after him you can doggone bet that the "lawsuite" will be prosecuted to the fullest extent. As I said I hope they make him repay ever dime.

#1.1.1.1.1.1 Frank Hamer on 09/03/11 at 04:36 PM [Reply]

It's not what I want to call it; it's what it is: a civil law suit -- not a criminal prosecution. Which, apparently, you think it is. Has your i.q. ever been measured? Seriously, buster, you sink deeper into the quicksand each & every time you open your yapper.

#1.2 Frank Hamer on 08/31/11 at 08:40 PM [Reply]

"prosecution"?
Huh?

This is a civil matter, not criminal.
Maddox isn't being prosecuted for anything.

Obviously, you cannot discern the difference.
From the tenor of your remarks, you seem to believe that Maddox would be wearing stripes and breaking rocks if he loses.
As usual, your bloviating is in error -- on many levels.

#2 Anonymous on 08/31/11 at 08:31 PM [Reply]

Once again this newspaper is doing its best (worst?) to defame a good man like Chris Maddox. Chris and the Maddox family have long ties to Barrow County and have done countless things for this community. What has The Barrow Journal ever done except try to tear everything down. Quite frankly, I don't care for outsiders like The Barrow Journal sticking their nose in Mr. Maddox's affairs! If Mr. Maddox ran a business a certain way it is NO business of The Barrow Buzzard newspaper.

#2.1 John Peter Zenger on 08/31/11 at 08:47 PM [Reply]

Please explain precisely what part of the story is defamatory.
The gist, as I read it, is that the FDIC has sued Maddox.
Unless you can prove that such a legal action has not been filed, then the story is true and, therefore, not defamatory.
Such civil actions are a matter of public record, so the BJ s well within its journalistic parameters to report the same.

Of course all this legalistic verbiage doesn't address the core nature of your compliant.
You are angry because a story critical of Maddox appears at all.
Very well.
If you want to pimp for the failed banker, that is your right.

But, don't be so silly as to accuse the newspaper of "defaming" the man simply because they report the truth.

All these Winder bluebloods are extremely thin-skinned since one of their own got hoist on his own petard. Comeuppance hurts, don't it?

#2.1.1 Anonymous on 09/02/11 at 05:36 AM [Reply]

I think he was talking about Jack Legg's comment.

But, I can't say I'm surprised by the FDIC's actions. Nor am I upset or saddened by it, quite the contrary -- ROFLMAO

#2.1.1.1 Gray Goose on 09/04/11 at 12:11 AM [Reply]

He said "this newspaper," so he was not referring to a witless blogger when he ranted about how Maddox was being defamed.

#2.1.1.1.1 Anonymous on 09/04/11 at 06:55 AM [Reply]

Whatever - Poor, Poor, Maddox is getting EXACTLY WHAT HE DESERVES. Just breaks my heart to see he have to pay his dues.

#2.2 duke of earl on 09/02/11 at 10:31 PM [Reply]

Let's see.... Maddox was allegedly part of something that cost the US taxpayers $71 million and somehow a newspaper is the bad guy for reporting on it? No wonder this county is so fouled up. This is a matter of right and wrong not who somebody is. Your comment is asinine.

#2.2.1 Liberty for All on 09/04/11 at 06:25 PM [Reply]

Just to set the record straight, it did not cost the taxpayers a dime. It cost the FDIC 71 million. The FDIC money came from a fund paid for by the banks that belong to the FDIC.

#2.2.1.1 Anonymous on 09/04/11 at 06:32 PM [Reply]

You need to fact check yourself. The Fed Government has put money into the FDIC lately. Part of Obama's ideas.

#2.2.1.1.1 citizen on 09/07/11 at 07:53 PM [Reply]

No, check yourself. The FDIC can draw from a credit line IF needed from the government. In fact, banks are now paying more in premiums than normal and have had special assessment to keep the solvency of the insurance fund.

#2.3 citizen on 09/02/11 at 11:07 PM [Reply]

Your right, if Mr. Maddox ran a business a certain way it is his business EXCEPT when he has a fiduciary duty when you are handling the money of the public. Also, the airplane wasn't for The Peoples Bank, it was for Silverton Bank in Atl. Don't get the two confused. Silverton had the jets and hanger. It's news, the Barrow Journal is just doing like any other story, reporting. In fact, I first saw this from the Atlanta Business Chronicle. The Maddox family did do a lot of great things in the community. Unfortunately, they got caught up in bad loans like the Arizona deal The Peoples Bank had such a large stake in that Silverton help to get a lot of other banks involved in and they all took a bath.

#2.4 Life-Long on 09/05/11 at 09:25 AM [Reply]

As a citizen, I appreciate the Barrow Journal for covering these topics. Maddox was in charge of handling my money and that of many others in this community. Not only that, the collapse of these banks is costing taxpayers millions of dollars through the FDIC...some more of my money! It really has to do with us all.

So far, there has been no defamation. Keep in mind that anything that is an opinion does not count as defamation, as we are all entitled to opinions.

#2.4.1 Darrrow on 09/05/11 at 12:54 PM [Reply]

Opinion is not protected automatically from being defamatory. If such were true, then the most vile statements could be couched as such without fear of legal retribution. The bar is high to prove slander or libel, but labeling something "opinion" is not a foolproof shield. However, truth is.

#2.4.1.1 Jack Legg on 09/05/11 at 02:13 PM [Reply]

And de truf wil set chew free.

#2.4.1.2 Life Long on 09/06/11 at 10:32 PM [Reply]

You're getting confused about what is an opinion and what is not. Defamation has to do almost entirely with false statements about a person's actions or physical condition...such as alleging a crime or a contagious disorder. You're right in that truth is a defense in such situations.

Under our freedom of speech, we can publicly say the most vile things about a person as long as they remain personal opinions. Such as...I think Mr. Maddox is dumb (for example). Of course, such opinions can get much much more vile and still remain protected as free speech.

#2.4.1.2.1 Darrrow on 09/06/11 at 11:47 PM [Reply]

Glad you brought up free speech. The US Supreme Court has ruled that the First Amendment does not REQUIRE recognition of the opinion privilege [defense to libel/slander].
Therefore, depending upon the jurisdiction, there might be no legal distinction between fact & opinion.

So, in sum, I didn't mean to imply that opinion is, in general, NO defense to defamation accusations, but merely that it is not a 100% absolute protection.

#3 I am LOL'ing all the way to the bank on 08/31/11 at 09:04 PM [Reply]

Thanks to everyone here. I needed a good laugh. Say what you want. I could probably use another laugh tomorrow.

Meow

#4 Anonymous on 09/01/11 at 08:54 PM [Reply]

$3 million for a airplane hanger? Is that a misprint? How can anyone spend $3 million for a hanger to park a plane under? And why does a small town bank need a private jet and a King Air? Something aint right here. No wonder they went under if this is true.

#5 Fred Sanford on 09/01/11 at 09:16 PM [Reply]

it wasn't for a small town bank....it was for Silverton bank... a huge regional "bankers bank"

#6 VoiceofReason on 09/05/11 at 08:17 PM [Reply]

Can anyone on here actually spell??

#6.1 Anonymous on 09/05/11 at 08:25 PM [Reply]

That Winder education we keep reading about.

#6.2 Keyboard guru on 09/06/11 at 11:15 PM [Reply]

It has nothing to do with spelling or "that wonderful Winder education"... it is keyboard operator error...error....error

#7 Barrow County Citizen on 09/06/11 at 08:18 AM [Reply]

I have been hearing stories for yeears about Chris Maddox. How he paid to send all the Board and families to Hawaii a few years ago. He had a house in the Georgia Club, that was just for entertainment purposes. He always lived large with the banks money. Maybe he will have to pay back triple!!!!

#7.1 r on 09/06/11 at 08:46 AM [Reply]

Have you heard stories about the non-profits that The Peoples bank supported? Have you heard stories about the t-ball teams the Peoples Bank supported? Have you heard stories for years about everything The Peoples Bank has contributed to?

Until you walk a mile in another man's shoes, maybe your bitterness, and jealousy, and envy ought to be put on the back burner for awhile.

Mistakes were made, to be sure. But the Maddox family contributed more than their share to this community, and to the people, ball teams, high school car washes, Key Clubs, events for little Johnny who has cancer, and everything else.

#7.2 Delight In Misfortune on 09/06/11 at 10:36 AM [Reply]

The "bank's money" was, in effect HIS money. His family owned the bank, after all. This, of course, didn't have anything to do with CUSTOMER money. Many of these anti-Maddox remarks are borne of envy for a how a rich man spent his money.

Schadenfreude. (Not that the witless here comprehend what that means.)

#7.2.1 Anonymous on 09/06/11 at 10:52 AM [Reply]

I'm anti Maddox, not because of how he spent his money, but because I hadn't been a resident long enough to qualify for a loan with People's Bank. Had NOTHING to do with my credit rating; it was ALL ABOUT BEING NEW to Barrow.

Here's a little story for you. When I first moved to Barrow, I leased property to run my business -- the man I leased the property from got a huge loan from People's Bank, not for his credit worthiness, but because his daddy had been with People's Bank for years before his death. Took this man less than 3 years to default on the loan and file bankruptcy.

Another bank took a chance on my business because of my credit rating, business plan etc... and here I am 10 years later, still in business, and have already paid off the 20 year loan.

So it just breaks my heart that good ole Jr. is being sued for how he ran DADDY'S bank into the ground.

#7.2.2 WOW on 09/06/11 at 11:48 AM [Reply]

The banks money belonged to the people that invested and banked there idiot. Not to mentioned, these retards played with peoples lives and jobs. You are a plain and simple idiot.

#7.2.2.1 r on 09/06/11 at 08:50 PM [Reply]

Haven't you ever heard about people living in glass houses. YOU'RE the idiot. YOUR money belonged to YOU. The bank's money belonged to the shareholders, including mostly the Maddox family (I presume). The only "retards" must be you. You obviously have NO idea about managing a company.

Get it together when you have a reasonable and coherent discussion/argument. Geez, and they multiply and live among us.

#7.2.2.1.1 Schadenfreude on 09/07/11 at 10:28 AM [Reply]

To hear these morons tell it, you'd conclude that Maddox was living in a chalet along the French Riviera until he embezzled millions of depositor's money and ran to Rio with a topless Brazilian lass.

Most of the negative posts here fall into two categories:
(1) people envious of his wealth and (2) those who got turned down for a loan.

Stupid, ignorant people whose anger at Maddox could not be more misplaced.

#7.2.2.1.1.1 R on 09/07/11 at 01:39 PM [Reply]

Schwingblade, seems to me that is exactly what it was.

Negative Posts: envious of what. Loosing it all and going to court for MILLIONS.
Do not loans. My book of business is doing great and not looking for attorneys.

#7.2.2.1.1.1.1 Schadenfreude on 09/07/11 at 02:34 PM [Reply]

I'm going to write in clear and concise English (which means it may baffle a near-illiterate Neanderthal like you).

Envious of the money he possessed and spent BEFORE the FDIC closed the bank.
These cretinous gloating hateful posts amount to kicking a man when he's down.

#7.2.2.1.1.1.1.1 R on 09/07/11 at 02:39 PM [Reply]

Schwingfrombothsides, that is exactly why he is being sued. IS THIS CLEAR FOR YOU. Put your big boy pants on. Burger King getting old for you??

#7.2.2.1.2 R on 09/07/11 at 01:36 PM [Reply]

Little r, I said investors. Can you read. And "(you presume)" well guess you really ahve no idea. Nice answer on the lives he affected by spending millions and obviously want not a business man. Hey, why dont you call him, perhaps you can help with the legal bills.

#7.2.2.1.3 R on 09/07/11 at 01:40 PM [Reply]

Oh, and little r. Seems you or Maddox neither know how to run a business. Look at where it got the two of you. IDIOT

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