queston re: bond claim filing

[WyomingSwede]

My former employer has filed a bond claim against me. (financial institution) I was chief lending officer. After I left he did not replace me in timely fashion and took some losses due to not monitoring the loan portfolio.
I did nothing dishonest, no fraud or embezzlement, just did the job to the best of my ability. Due to the upper management policies, our employee turnover was over 30%, we could not keep key staff or lenders on a regular basis. We followed a central loan committee and the CEO approved all loans over a certain dollar amount. The CEO has been written up for management practices before by regulators. He files bond claims on one out of three exiting lenders. He has been successful on one claim to my knowledge.
After I left; the IT person left and after that occurred, it was discovered that a computer error did not notify anyone that over 60 loans were considerably past due. How is that my liability?
I have been contacted by the bonding company as to going after me personally for any losses.
They are asking for my help in investigation.
I have a couple questions:

1) Do I need an attorney?
2) Do they need to convict me in court to pay out?
3) How can they hold me negligent and not the CEO who was approving loans?
4) Would he (CEO) be liable also.
5) Can I counterclaim against them for loss of reputation?
6) Would this not be an indictment of his management practices?

If anyone can give me some insight into this type of thing I would be most appreciative. Thanks swede

[WyomingSwede]

posted almost a month, 51 views...did I ask too hard of questions? Just curious?

swede

[Admin]

Looks like your post got buried. Most likely due to the barrage of spam posts that we attract. To answer your questions...

1) It sounds like you might want to consider it. If you personally indemnified for the bond, they can pursue you personally if they find you negligent.

This all sounds a bit odd though, as they typically would go after the company first, followed by the personal indemnitors (typically the owner). Are you positive there isn't some miscommunication as to what is happening?

2) If you are required to pay, they will first send you notice of payment the payment amount. If you refuse to pay, they may take you to court to collect.

3) I can not answer this, as I do not know the full story. Has the surety paid the loss? Did the CEO personally indemnify? Did they try to collect from your previous company?

4) Only if he personally indemnified as well, which he likely did.

5) That is something you should ask an attorney.

6) I am not clear on what the question is here.

[WyomingSwede]

Thank you for your reply. I appreciate it.

A few facts, I was only notified of a potential claim, the proof of loss has not been completed, and I dont believe that the claim has been completely filed.

The CEO has had some previous claims filed that were not paid. It sounds like the Surety company doesn't feel that this will be paid either.

My question is that how can the CEO file bond claims repeatedly against subordinates that he supervised fully. He is a very hands-on type, never delegating anything, he has complete knowledge & supervision of all employees. Would not filing a bond claim put his management practices at risk? If he feels that his underlings are liable, would he not have to accept liability or management responsibility for some of this action?

I dont understand how he can wield a "black brush" on an ex-employee and not accept any responsibility for himself or the company. I left for a better job over 9 months ago....now this all comes up. I would welcome your comments. Thank you again.

swede

[Admin]

My question is that how can the CEO file bond claims repeatedly against subordinates that he supervised fully. He is a very hands-on type, never delegating anything, he has complete knowledge & supervision of all employees. Would not filing a bond claim put his management practices at risk? If he feels that his underlings are liable, would he not have to accept liability or management responsibility for some of this action?

He can not. Unless, you were required to post a bond specifically to bond you, not the company. Did you ever obtain a bond specifically for you? (e.g. Idaho requires a $10,000 loan originator bond and a seperate Idaho mortgage broker bond of the company) I think there may be some confusion as to what is actually going on here.


PS - The question you have are not about a fidelity bond. Therefore, I am moving this thread to the "Micellaneous Bonds" within the commercial bond section.