February 13, 2007
Former college leader found guilty of bank fraud
By Christina Davis
Edward P. Mattar III, who served as president of the defunct Central New England College in Worcester during the 1980s, was found guilty yesterday by a Colorado judge of conspiracy and fraud in relation to the collapse of BestBank of Boulder, Col.
Mattar, along with two other former BestBank execs, faces a sentence of up to 30 years in prison and fines totaling $14 million, according to the U.S. Attorney for the District of Colorado.
BestBank failed in 1998 after losing more than $200 million. The bank had been in the business of issuing credit cards to "subprime borrowers," or people with poor credit histories, and had been recognized by the American Banker newspaper as the top most-profitable small bank in 1994, according to an article in the Wall Street Journal.
However, the bank was seriously insolvent, with liabilities to its depositors exceeding the value of its other assets.
The judge on the case has not set a sentencing date.
Mattar, along with two other former BestBank execs, faces a sentence of up to 30 years in prison and fines totaling $14 million, according to the U.S. Attorney for the District of Colorado.
BestBank failed in 1998 after losing more than $200 million. The bank had been in the business of issuing credit cards to "subprime borrowers," or people with poor credit histories, and had been recognized by the American Banker newspaper as the top most-profitable small bank in 1994, according to an article in the Wall Street Journal.
However, the bank was seriously insolvent, with liabilities to its depositors exceeding the value of its other assets.
The judge on the case has not set a sentencing date.
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