Regional News
Neb. AG looking into activities at closed bank
Published Wednesday, February 18, 2009 at 05:27 PM
WOOD RIVER, Neb. (AP) _ Nebraska authorities are investigating whether criminal charges are warranted for activities at Sherman County Bank before its sale to Heritage Bank in Wood River. The Attorney General's office confirmed the investigation Wednesday. Officials closed the Loup City-based bank on Friday because it didn't have enough capital reserves to cover margin calls on grain-trading contracts for about 30 farm customers. The bank was among several defendants in a 2004 federal lawsuit that were ordered to pay a total of $325,000 in restitution to 57 farmers who lost money in an unauthorized commodity trading program. That was in addition to more than $1 million in settlement claims paid to 84 farmers allegedly defrauded.

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