Camco Financial, a mortgage company based in California, found itself at the center of a financial scandal in the early 2000s. The company's aggressive lending practices and subsequent collapse led to a massive investigation.
The investigation revealed that Camco Financial had engaged in predatory lending, targeting low-income and minority communities with subprime mortgages that had hidden fees and high interest rates. This practice led to widespread financial devastation for many families.
The company's collapse was swift, with Camco Financial ceasing operations in 2002 and leaving thousands of borrowers with worthless mortgages.
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Investigation
An investigation into the Camco sale is underway to determine if minority shareholders are receiving adequate compensation for their shares.
The investigation is focused on whether the proposed deal properly values Camco stock and if the company's board attempted to obtain the highest share price for all shareholders prior to agreeing to the deal.
Former SEC attorney Willie Briscoe and the securities litigation firm of Powers Taylor LLP are leading the investigation.
You can contact Willie Briscoe at The Briscoe Law Firm, PLLC, at (214) 239-4568, or via email at [email protected].
Zach Groover at Powers Taylor LLP can also be reached toll-free at (877) 728-9607, or via email at [email protected].
There is no cost or fee to participate in the investigation.
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Camco Financial
Camco Financial was a registered bank holding company under the law of Delaware, headquartered in Cambridge, Ohio. It wholly owned the Ohio-based Advantage Bank and operated 22 offices in Ohio, Kentucky, and West Virginia.
Camco Financial Corporation was a public company traded on the Nasdaq stock exchange under the symbol CAFI. It was founded in 1970 and was in the financial services industry.
The company's key people included James Huston, who served as both the chairman and CEO. Camco Financial Corporation had a total of 200 employees as of 2012.
In 2012, Camco Financial Corporation had total assets of $764.259 million, total stockholders' equity of $59.727 million, and deposits of $627.224 million. The company's operating income was $31.623 million, and its net income was $4.163 million in the same year.
Camco Financial Corporation underwent several mergers, including one with London Financial Corporation in 2004 and another with Huntington Bancshares in 2013. The merger with Huntington Bancshares was completed by March 2014, effectively ending Camco Financial's independent existence.
Here are the key dates in Camco Financial's history:
- October 19, 1970: Camco Financial Corporation was organized as a holding company.
- June 2001: Camco Financial Corporation finished reorganizing and combined the banking activities under Advantage Bank.
- 2004: Camco Financial Corporation merged with London Financial Corporation.
- February 9, 2012: The Federal Deposit Insurance Corporation (FDIC) and the State of Ohio's Department of Commerce, Division of Financial Institutions (Ohio Division) issued a Consent Order.
- 2013: Camco Financial Corporation declared the termination of the Consent Order.
- March 2014: The merger with Huntington Bancshares was completed, ending Camco Financial's independent existence.
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