Bank Sues Ex-President Over Expense Tab

Troubled Bank of Newport sued its longtime former president Thursday, alleging that he and his wife used expense accounts over five years to help them live the good life.

The Newport Beach bank charged that Ronald L. and Verna Rodgers picked up more than $335,000 for expenses that were “unauthorized personal indulgences and acquisitions.” The suit did not detail what the couple purchased, and the bank’s lawyer, Ronald Rus of Irvine, declined comment.

Ronald Rodgers, who helped found the bank in 1972, resigned under pressure last March when federal regulators criticized directors when they became alarmed about the bank’s continued losses.

In August, 1992, the Federal Deposit Insurance Corp. issued a wake-up call to directors in the form of a cease-and-desist order, its most severe directive. The FDIC said directors were not paying enough attention to what management was doing.

The bank’s lawsuit contends that Rodgers “orchestrated a scheme” with his secretary, Verna Johnson, whom he married in 1992, to conceal the charges for personal gifts among legitimate expenditures on his expense account.

The suit alleges that Rodgers already has acknowledged that he and his wife owe $22,000 for unauthorized expenses.

Neither Rodgers nor his lawyer could be reached Thursday for comment.