Updated to reflect Sapp's denial of FDIC allegations
Former Tennessee Commerce Bancorp CEO Mike Sapp could be fined $485,000 for some of his actions leading to the failure of the Franklin business bank.
In a legal filing published Friday, Federal Deposit Insurance Corp. officials allege that, starting in 2008, Sapp set up or oversaw the creation of several schemes to mask Tennessee Commerce's potential losses and then repeatedly misrepresented the health of the bank to regulators and the bank's outside directors. Tennessee Commerce was closed by state and federal regulators in January 2012.
The FDIC says Sapp breached his fiduciary duty as an executive and board member and that his "reckless, unsafe or unsound practices and/or breaches of his fiduciary duty were part of a pattern of misconduct and/or caused more than a minimal loss to the Bank." In all, the agency says, his actions caused at least $5.3 million in losses.
Sapp is denying the allegations and the appeals process is still in its very early stages.
Among the alleged actions detai