May 31, 2006 Farmers Exchange Bancorporation

Farmers Exchange Bancorporation (FEB) has agreed to pay over $2.1 Million to settle a qui tam action filed by two private relators, Ronald Jenlink and Greg Boruff.  The allegations of the case were that from 1993 to 2006 FEB improperly charged excessive fees and inflated interest rates on federally-guaranteed agricultural loans, which in turn, resulted in FEB’s submission of false claims seeking payment from the United States for guaranteed loss claims and interest assistance payment.

As part of a settlement, Mr. Jenlink and Mr. Boruff are to receive $340,320 for having filed the qui tam case.

See U.S. Dept of Justice Press Release 5/31/06

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