Aaron's Founder R. Charles Loudermilk Sued by Federal Regulators
Loudermilk and eight other officials and directors of Buckhead Community Bank were sued by FDIC for approving nearly $22 million in bad real estate loans.
The Federal Deposit Insurance Corp. sued R. Charles Loudermilk, founder of Aaron's furniture rental company, because of $21.8 million of bad real estate loans made by the failed Buckhead Community Bank, according to Businessweek. Loudermilk, known by many as Mr. Buckhead, helped found Buckhead Community Bank in 1998 and was its former chairman. In September, Loudermilk left Aaron's as its board chairman, becoming chairman emeritus. According to a complaint from FDIC filed on Nov. 30 in federal court in Atlanta, Loudermilk and eight of the bank's insiders "knowingly and recklessly" approved the 13 bad loans which violated the bank's underwriting policies, according to news reports. FDIC also sued former bank CEO Martin Cosgray; former bank …
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