Bank Responds to Lawsuit
Mainstreet Bank accused of fraud and misusing funds
Mainstreet Bank of Ashland responded to a lawsuit filed by a former employee. The lawsuit alleges the bank and its leaders committed fraud and misused federal funds for bonuses and to buy vacation homes. The bank's response is listed below: "On Tuesday, October 2, Mainstreet Bank received notice that a lawsuit was filed against the bank by a former bank employee. Whereas management and leadership of the bank will not disclose specifics about the lawsuit, out of respect to the plaintiff who is also a Mainstreet Bank customer and also due to regulatory requirements, there are several facts that should be clarified. Mainstreet Bank is a community bank that supports and serves our local community. Not only are we strictly monitored and supervised by our board of directors, but like all banks, we are highly regulated and must adhere to certain federal requirements, restrictions and guidelines. Mainstreet Bank has always subscribed to all regulatory requirements, both before and since the initiation of the TARP program. The allegations made in the lawsuit filed October 2 are erroneous and unfounded. The bank categorically denies any and all allegations of wrongdoing, and we look forward to the opportunity to defend the bank against these meritless claims. Mainstreet Bank has always been an institution that strives to serve our customers and our community with excellence. The trust of those customers is not a responsibility we take lightly. Neither are our regulatory responsibilities. For these reasons our employees, at all levels of the organization, are required to maintain the highest level of integrity. We act swiftly at any point in which that integrity is in question, to ensure protection for our customers and their interests. In the interest of propriety, no other points of the case will be discussed, nor will any other statements be released on behalf of Mainstreet Bank."