Defendant Name:
Mercantile Bancorp, Inc.
Defendant Type:
Public Company
SIC Code:
6712
CUSIP:
58734P10
Initial Case Details
Legal Case Name
SEC v. Mercantile Bancorp, Inc., Ted Awerkamp and Michael McGrath
First Document Date
24-Sep-2013
Initial Filing Format
Civil Proceeding
Case Number
13-cv-03341
Allegation Type
Issuer Reporting and Disclosure
Federal District Court
Illinois, Central District of Illinois
Violations Alleged
Additionally,
Ted Awerkamp is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Michael McGrath is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Rule 12b-20 of the Exchange Act (willfully/knowingly).
Ted Awerkamp is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Michael McGrath is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(a) of the Exchange Act (willfully/knowingly).
Michael McGrath is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Rule 13a-13 of the Exchange Act (willfully/knowingly).
Ted Awerkamp is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Michael McGrath is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act (willfully/knowingly).
Ted Awerkamp is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Michael McGrath is alleged to have aided and abetted Mercantile Bancorp, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act (willfully/knowingly).
Resolutions
First Resolution Date
26-Sep-2013
Headline Total Penalty and Disgorgement
$200,000
Related Documents:
Complaint; Equitable Relief is Sought
On September 24, 2014, the SEC filed a complaint alleging that Mercantile Bancorp, Inc. failed to "disclose a probable, material loan loss in a securities registration statement the bank filed with the SEC in the fall of 2010" and failed to "recognize that loss in the bank's third quarter financial statements that Mercantile filed with the SEC in November 2010." The SEC alleged that in failing to disclose and recognize the above loan loss, Mercantile was able to "(i) falsely state that its main subsidiary bank had met certain capital ratio thresholds required by the Federal Deposit Insurance Corporation ("FDIC"); (ii) understate its net loss for the quarter and the nine months ending September 30, 2010 as $7.5 million and $11 million (instead of at least $12.78 million and at least $16.28 million); and (iii) falsely state that its main subsidiary bank had net income of $1.8 million for first nine months of 2010 when it actually had a net loss of at least $3.48 million during that period."
2013-196
24-Sep-2013
Press Release--Civil Action
SEC Charges Two Bank Executives for Financial Misstatements and Failure to Disclose Probable Loss on Troubled Loan
On September 24, 2013, the SEC announced that it charged Illinois-based Mercantile Bancorp ("Mercantile"), its former CEO Ted Awerkamp ("Awerkamp"), and its former CFO Michael McGrath ("McGrath") with failing to recognize in financial statements a probable loss of one of the bank's largest troubled loans. Without admitting or denying the SEC's allegations, Mercantile, Awerkamp, and McGrath consented to the entry of final judgments. In addition to monetary sanctions and officer-and-director bars against Awerkamp and McGrath, the individuals agreed to be permanently enjoined from future violations of securities laws to settle the SEC's charges.
SEC Charges Two Bank Executives for Financial Misstatements and Failure to Disclose Probable Loss on Troubled Loan
On September 26, 2013, the SEC issued a litigation release announcing that it changed Mercantile Bancorp, Inc. and two of its executives for failure to disclose probable loss on troubled loan. According to the SEC, Mercantile and the two executives "consented to the entry of final judgments without admitting or denying the SEC's allegations. In addition to the monetary sanctions and officer and director bars against Awerkamp and McGrath, they agreed to be permanently enjoined from future violations of these provisions of the securities laws."
Final Judgment as to Defendant Mercantile Bancorp, Inc.
On September 25, 2013, Judge Richard Mills entered Final Judgment as to defendant Mercantile Bancorp, Inc. Mercantile Bancorp, Inc. consented to the entry of the Final Judgment without admitting or denying the allegations of the SEC's complaint.
Other Defendants in Action:
