A. BBX, BankAtlantic, and the Commercial Residential Portfolio
Defendant BBX Capital Corporation (BBX), formerly known as BankAtlantic Bancorp,Inc., is a publicly traded company and was the holding company of BankAtlantic during 2006and 2007. BankAtlantic was a federal savings bank offering consumer and commercial bankingand lending services throughout Florida and was one of Florida’s largest banks in 2007. BBX’scommon stock is listed on the New York Stock Exchange and is registered with the Securitiesand Exchange Commission (SEC) under § 12(b)
of the Securities and Exchange Act of 1934(Exchange Act), 15 U.S.C. § 78O(b). Defendant Alan Levan is the Chairman of the Board and CEO of BBX. In 2007, he was also the Chairman of BankAtlantic.As one of Florida’s largest commercial banking and lending institutions, BankAtlantichad $1.5 billion in its commercial real estate loan portfolio in 2007. About $533 million of thatamount consisted of loans in its commercial residential real estate land acquisition and development portfolio (hereafter, the Commercial Residential Portfolio). The loans in theCommercial Residential portfolio consisted of three types: Builder Land Bank (BLB) loans;Land Acquisition and Development (LAD) loans; and Land Acquisition, Development and Construction (LADC) loans. BLB loans “were loans where the borrower had an option contractwith a builder in which the builder agreed to give a down payment to the borrower and close onthe purchase of a minimum number of lots by a certain date.” The other non-BLB loans did notinvolve such option contracts.BankAtlantic maintained certain internal policies for approving and monitoring loans inthe Commercial Residential portfolio. It had a Major Loan Committee (MLC) that had toapprove any loan in excess of $5 million or any extension to these loans. In 2007, the MLCconsisted of Levan; Jeff Mindling, the Chief Credit Officer; Jay McClung, an Executive VicePresident and the Chief Risk Officer; Marcia Synder, Executive Vice President of CommercialLending; Perry Alexander, a commercial loan officer with experience with large loans, and JohnAbdo, a member of BBX’s board of directors. At some point in 2007, Levan’s son, Jarrett Levan(Jarett), BankAtlantic’s President, also joined the MLC.
In crafting the undisputed facts set forth below, the Court ignored asserted denials that either failed to cite to record evidence or that failed to deny properly supported facts asserted by theother side.
Case 0:12-cv-60082-RNS Document 234 Entered on FLSD Docket 10/10/2013 Page 2 of 30