Developer Shaya Boymelgreen’s mounting financial concerns have intensified recently. The LibertyPointe Bank co-founder saw his bank served with a cease and desist order from the Federal Deposit Insurance Corp. last month to halt its reckless loan policies. The bank has 92 percent of its loans in real estate and many of those credits have gone south, according to Crain’s. Boymelgreen’s many stalled projects and lawsuits waged against him — with accusations ranging from breach of contract to fraud and negligence — are examined.

Federal regulators have ordered developer Shaya Boymelgreen’s
LibertyPointe Bank to cease and desist from risky lending. According to
an order posted today on the Federal Deposit Insurance Corporation Web
site, the bank had excessively high levels of delinquent loans, was not
setting aside enough funds to deal with loan losses, and had
concentrated too much of its portfolio in commercial real estate
lending. The bank’s $182 million portfolio has about $13 million worth
of non-accruing multi-family loans and $10 million in non-accruing
construction loans. [more]