USHarvard Illionois Bancorp Reporting Possible Fraud On Some Investments
Harvard Illinois Bancorp, Inc.
(the "Company") (OTCBB: HARI) was advised on September 29, 2014 by Pennant
Management, Inc. ("Pennant"), an investment advisor through which the Company
has invested approximately $18.1 million in repurchase agreements, that the
loans underlying such repurchase agreements may be fraudulent. The loans were
purported to be guaranteed by the United States Department of Agriculture.
Pennant has stated that it "is diligently working to affirm the status of the
USDA guarantee of each loan subject to the repurchase agreement ..." and that
it "will do everything possible to see that [its clients] are made whole."
As of this date, the Company does not know whether it will recognize losses
with respect to these agreements or, if losses are recognized, the timing or
amount of such losses.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.