File photo: Jerry Williams, left, the former president and CEO of Orion Bank enters a vehicle after being sentenced to six years in prison at the Federal Courthouse on Tuesday 6/12/2012. A settlement has been reached in a class action lawsuit filed by former Orion Bank employees against him. / News-press.com File Photo
Former Orion Bank president Jerry Williams has reached a settlement agreement in a class action lawsuit accusing him of looting the Naples-based bank’s pension fund shortly before the bank went under in 2009.
“The case has been settled,” Williams’ attorney Thomas Buchanan said Friday. “The main terms and conditions have been approved through email and discussions.”
Meanwhile, Williams remains in federal prison in Montgomery, Ala., serving a six-year sentence for bank fraud in a separate case. He was sentenced June 12.
An order filed Tuesday by U.S. District Judge John Steele gives the two sides 30 days to submit a final order in the case or ask for more time.
Buchanan said the agreement will be formally submitted to the judge, whose approval is required because it’s a class action.
The fraud indictment against Williams said he, along with two other former Orion executives and a Tamarac businessman, schemed to illegally raise more funds while selling off bad loans to make the foundering bank appear financially healthier than it actually was.
Williams, the executives and the businessman pleaded guilty.
According to court documents, Williams froze cash withdrawals from the retirement fund so he could sell $1 million of soon-to-be-worthless Orion stock to the fund in April 2008, using the money to pay his income taxes and to buy a $79,653 Cobalt yacht.
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