Opinion ID: 717547
Heading Depth: 2
Heading Rank: 2

Heading: The Reveruzzi Loan

Text: 8 In 1990, John Reveruzzi worked for B & H as an executive vice president. His duties primarily consisted of marketing and obtaining financing for B & H ventures. Reveruzzi also became a partner in several B & H projects. 9 In the summer of 1990, several B & H ventures, including ones in which Reveruzzi held an interest, were having cash flow problems. On July 30, 1990, Central granted a loan to Reveruzzi in the amount of $500,000. On the same day, Reveruzzi made a loan to B & H in the same amount. Hutensky did not notify the board of directors of Central that the proceeds of the Reveruzzi loan would be transferred to B & H, and he did not seek prior approval for the loan. 10 The Reveruzzi loan has not been repaid. Hutensky and the FDIC stipulated that the Reveruzzi loan would result in a loss of approximately $439,469.48 to the FDIC, as Receiver for Central.