SEC Charges Eagle Bancorp and Former CEO with Failing to Disclose Related Party Loans

The Securities and Exchange Commission today charged Eagle Bancorp, Inc., based in Bethesda, Maryland, and its former Chief Executive Officer and Chairman of the Board, Ronald D. Paul, with negligently making false and misleading statements about related party loans extended by the bank to Paul’s family trusts. Eagle and Paul have agreed to settle the SEC’s charges. The SEC’s order against Eagle finds that, from March 2015 through April 2018, Eagle failed to include loans to Paul’s family trusts totaling at times nearly $90 million in the related party loan balances included in its annual reports and proxy statements. The SEC’s order also finds that Eagle improperly omitted tens of millions of dollars of loans to Eagle directors and their family members from these related party loan balances.