Former Bears QB McMahon sued over bank's loans

By Don Babwin

Associated Press

Published: Monday, April 9 2012 2:10 p.m. MDT

Summary

In an attempt to recover $104 million, the Federal Deposit Insurance Corp. has sued former Chicago Bears quarterback Jim McMahon and others involved in a now-failed bank that was at the center of the campaign for President Obama's old U.S. Senate seat.

CHICAGO — In an attempt to recover $104 million, the Federal Deposit Insurance Corp. has sued former Chicago Bears quarterback Jim McMahon and others involved in a now-failed bank that was at the center of the campaign for President Obama's old U.S. Senate seat.

A person close to the case said Monday the former quarterback is among the seven directors, along with two officers at Broadway Bank, who were sued last month. The person spoke on condition of anonymity because he is not authorized to discuss the case.

The lawsuit says the defendants approved the loans despite warnings that they were risky. In a statement released through his attorneys, McMahon denied any wrongdoing.

The bank was founded by the father of former state treasurer Alexi Giannoulias (jeh-NOO'-lee-ehs), who lost the 2010 race for Obama's old Senate seat.

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