CHARTER FEDERAL ANNOUNCES EMBEZZLEMENT RECOVERY
CHARTER FEDERAL ANNOUNCES EMBEZZLEMENT RECOVERY BRISTOL, Va., Nov. 6 /PRNewswire/ -- Charter Federal (NASDAQ: CHFD)
announced today that it has recovered a total of $1,930,000 as a result of action it had taken to collect approximately $2.4 million (including accrued interest) which had been embezzled by a former employee.
The amount recovered included the settlement of a fidelity bond insurance lawsuit as well as funds from other sources. The entire amount will be reflected as income on Charter Federal's books during the second quarter of fiscal 1992. "The Board of Directors and management of Charter Federal are quite satisfied with the amount of this recovery and with settlement having been reached out of court," said E.L. Byington, Jr., Chief Executive Officer. "We are pleased that this matter is now concluded and we can put it behind us," he said. As soon as the formalities of the settlement of the fidelity bond case are concluded, the Federal District Court, Roanoke, Virginia, will dismiss that litigation. Charter Federal, which began operation in 1920, is a federally- chartered stock Savings Bank headquartered in Bristol, Virginia with 29 branch offices throughout Southwest and Southside Virginia and East Tennessee. -0- 11/6/91 /CONTACT: Douglas D. Deppen, Senior Vice President and Chief Financial Officer, Charter Federal Savings Bank, 703-669-5101/ (CHFD) CO: Charter Federal Savings Bank ST: Virginia IN: FIN SU: DF -- CH003 -- 1617 11/06/91 10:50 EST
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|Date:||Nov 6, 1991|
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