Remind me to never bank at any bank spelled “Banc.” It’s un-American.
Steven Sugarman, the chief executive of fast-growing Irvine lender Banc of California, resigned on Monday, the same day the bank announced it is under investigation by the Securities and Exchange Commission.
The bank offered no explanation for Sugarman’s resignation but the move, and the SEC investigation, appear to be continued fallout from questions about insider relationships at the bank and connections between bank insiders and a convicted fraudster.
In an early morning announcement, the bank said that Sugarman, a board member since 2010 and chief executive since 2012, had resigned as chairman and CEO. In a separate announcement, the bank acknowledged it has received a formal investigative order and a subpoena from the SEC.
The bank said the subpoena demands information related to an October press release in which Banc of California laid out its response to a blogger’s allegations that the bank was connected to and possibly controlled by Jason Galanis, an L.A. financier who pleaded guilty to securities fraud charges over the summer.
