The Real Deal Miami

Condo developer creditors name Ocean Bank in suit

August 19, 2008 10:54AM

Creditors in the bankruptcy of Puig Inc., a Miami-Dade condo-conversion developer, claim Ocean Bank made fake loans to the developer’s affiliates and contributed to its financial collapse. The suit also alleges that some Ocean Bank loan officers had a vested stake in seeing Puig survive, having personally made loans to Puig entities through another company. Michael Budwig, a lawyer for the creditors committee said Ocean Bank made a $975,000 loan to enable one Puig company to buy eight condo units from another Puig company. The suit says the money actually went to repay various Puig entities’ overdraft positions at the bank. In return, Ocean Bank received liens on the condo units.