GRAND RAPIDS (WZZM) - A bankruptcy judge has ruled against Huntington Bank for fraudulent transfers related to the Cyberco/Teleservices scam in 2004.
In 2004, Cyberco, which was called CyberNET, and a sister company Teleservices, was raided by the FBI and founder Barton Watson committed suicide during the investigation for fraud.
Thursday, a bankruptcy judge in Grand Rapids issued in his final report awarding the trustees from Teleservices $81 million from Huntington Bank for their continuing to load money to Teleservices, while "red flags" of fraud were obvious. The trustees claim Huntington's actions "propped up the fraudulent scheme of Cyberco which, without Huntington Bank's help, would have collapse by 2003 or early 2004, saving many finance companies from being victimized for millions."
In April, the same judge ruled a $72 million judgement against Huntington.