The Federal Deposit Insurance Corp sued former IndyMac Bank Chief Executive Michael Perry to recover over $600 million in damages and costs related to residential loans made by the lender, according to court documents.
The FDIC said Perry negligently allowed the production of a pool of more than $10 billion in risky, residential loans intended for sale to a secondary market. These loans were made between at least April-October 2007.
The lawsuit was filed in the district court of California.
The lending caused IndyMac, a large California mortgage lender that failed in July 2008, and its receiver to incur damages of over $600 million, court documents showed.
Last July, the FDIC also sued to recover $300 million from former executives of IndyMac.
The case is FDIC v. Perry, U.S. District Court, Central District of California, No. CV11-5561.
(Reporting by Mihir Dalal in Bangalore, editing by Bernard Orr)