Traverse City Record-Eagle


March 12, 2014

Calcutt charges still pending

TRAVERSE CITY — Civil charges against Northwestern Bank’s former president, CEO and board chairman for dishonesty and unsafe banking practices remain unresolved, six months after federal regulators attempted to ban him from banking and levy a $125,000 fine.

The Federal Deposit Insurance Corporation alleged in August 2013, that Harry “Scrub” Calcutt, former senior loan officer William Green, and bank executive vice president Richard Jackson tried to hide in excess of $38 million in loan defaults by the bank’s largest borrower from the bank’s board of directors and government regulators.

The agency accused the men of a pattern of dishonesty and unsound and unsafe banking practices that caused the bank to be burdened by financial losses.

Calcutt, a major stakeholder of the bank’s holding company, said in September 2013 he did “nothing wrong” and would fight the allegations in an administrative hearing. He could not be reached for comment.

The FDIC won’t comment until the charges are resolved or an administrative hearing is scheduled, said spokeswoman LaJuan Williams-Young.

The FDIC also recently announced it had fined former Northwestern Vice President Michael Doherty $20,000 for unnamed banking violations. The FDIC reached a stipulated agreement in July 2013 with Doherty. Agency officials declined to release a copy of the agreement or discuss the violations.

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