Two Colorado elected officials joined U.S. Sen. Michael Bennet on Tuesday in asking for a federal investigation of failed New Frontier Bank in Greeley.
U.S. Sen. Mark Udall and U.S. Rep. Betsy Markey, both Colorado Democrats, co-signed with Bennet a letter to U.S. Attorney General Eric Holder asking that the Department of Justice investigate allegations of fraud at New Frontier Bank.
An investigative series by The Denver Post last month revealed that federal and state regulators missed or failed to take action to address insider transactions, attempts to hide loan losses, and apparent stock-for-loan transactions, among other problems.
Colorado regulators shut the bank down in April. The $1 billion failure is the costliest in state banking history.
Several farms, dairies and small businesses in northern Colorado have filed for bankruptcy protection or face financial problems following the bank’s demise.
“Given the enormity of the failure, we request that the Department of Justice investigate the allegations,” the Colorado officials said in the letter. “If the Department of Justice determines that New Frontier officials violated federal statutes or committed fraud, those responsible should be prosecuted to the fullest extent of the law.”
Bennet had independently asked for a Justice Department investigation shortly after The Denver Post series was published.
In a brief statement issued Tuesday, Justice Department spokeswoman Laura Sweeney said the agency “will review the letter.” Steve Raabe, The Denver Post
