$25 MILLION FRAUD ACTION FILED AGAINST COMMERCEBANK, NEWPORT BEACH, CALIF., BY NEWPORT WEST CUSTODIAL CORP.
$25 MILLION FRAUD ACTION FILED AGAINST COMMERCEBANK, NEWPORT BEACH, CALIF., BY NEWPORT WEST CUSTODIAL CORP. NEWPORT BEACH, Calif., Sept. 14 /PRNewswire/ -- The following is being issued by Newport West Custodial Corp. (NWCC): Newport West Custodial Corp. (NWCC) and Scott Purcell have filed a $25 million lawsuit against CommerceBank (OTC: CBNB), a $300 million (assets) FDIC insured bank in Newport Beach, and its president, Raymond Dellerba, for breach of contract and fraud (Scott Purcell et al. v. CommerceBank, et al., United States District Court Case No. 92 4559 Kn (GTx)). In June of 1991 CommerceBank acquired the assets and business of NWCC structured through an employment agreement with Purcell where Purcell was required to cease operations of his investment servicing business (NWCC) and reopen the business as a department of CommerceBank. Purcell was to receive a fixed percentage of the profits booked by the department and be paid outright for NWCC assets (furniture, computers and software) brought into the bank. In the first eight months of operations, Purcell generated in excess of $750 million in accounts for the department at a booked net profit of nearly $2 million. In March of 1992 CommerceBank refused to pay Purcell the contractual amounts due. Additionally, CommerceBank refused to pay Purcell for the NWCC assets then in its possession, thus forcing Purcell out of the bank and into this action. -0- 9/14/92 /CONTACT: Scott Purcell, CEO of Newport West Custodial, 714-261-5067/ (CBNB) CO: Newport West Custodial Corp.; CommerceBank ST: California IN: FIN SU:
LS-KJ -- LA002 -- 9011 09/14/92 10:01 EDT
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|Date:||Sep 14, 1992|
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