FDIC sues Aaron's founder Loudermilk over bank loans

Furniture Today Staff -- Furniture Today, December 4, 2012

ATLANTA — Aaron's founder Charlie Loudermilk was sued by the Federal Deposit Insurance Corp. for bad real estate loans made by a failed bank he chaired, according to a report by Bloomberg.

Loudermilk, who also is founder and former chairman of the failed Buckhead Community Bank, and other directors and officers of the bank "knowingly or recklessly" approved the $21.8 million in commercial real estate loans that violated the bank's underwriting policies, Bloomberg reported from the federal court compliant.

FDIC is seeking the amount of the loans in compensatory damages, the report said, adding that the Deposit Insurance Fund losses total $372.4 million.

An attorney for Loudermilk said the complaint has no merit.