CenTrust Bank controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1993
Federal conviction of David L. Paul
Paul was convicted on 68 counts of tax fraud, obstruction of justice, and misapplication of bank funds. He received an 11-year sentence, a $5 million fine, and a $60 million restitution order, and later pleaded guilty to 29 securities violations.
1990
Alleged misuse of bank funds
Investigators alleged that David L. Paul used CenTrust resources for personal purposes, including home improvements, yacht expenses, and costs associated with an art collection. The allegations contributed to the criminal case surrounding the thrift's collapse.
1990
BCCI nominee ownership and securities transactions
CenTrust was investigated over a reported 28 percent ownership interest held through a nominee linked to Bank of Credit and Commerce International, as well as a subordinated-debt transaction that allegedly caused CenTrust to repurchase securities at a loss.
1990
Securities dealings and alleged artificial profits
Investigators examined CenTrust transactions involving Playtex and Memorex shares and American Continental Corporation. The dealings were described as potentially inflating prices and producing unsupported or bogus profits in thinly traded securities.
1990
Political influence and bribery allegations
CenTrust and Paul attracted scrutiny over political contributions, fund-raising activities, and contacts with public officials. Miami Beach mayor Alex Daoud was convicted of accepting a bribe related to permits for expanding the dock at Paul's residence.