Banker loses appeal of contempt ruling, sanctions

SIOUX FALLS, S.D. (AP) — A South Dakota bank and its president have lost an appeal of a contempt ruling and sanctions against them.

The Eighth Circuit Court of Appeals affirmed the ruling against the First State Bank of Roscoe and John Beyers. He was accused of maneuvering clients into repaying debt that should have been discharged in bankruptcy.

The Argus Leader says Brad and Brenda Stabler owed the bank more than $600,000 when their agriculture business failed. Rather than take a loss on the loan by foreclosing on land and equipment, Beyers was accused of maneuvering them into taking out additional loans worth $650,000 without permission from the bankruptcy court and concealing them with third-party transactions and transfers.

A bankruptcy judge ordered the bank and Beyers to pay more than $200,000.

Categories: South Dakota News