ButlerBank Consulting

education employment experience

Steve Butler began his banking career in 1971 and his consulting career in 1986. His practice includes forensic accounting matters litigation consulting and expert testimony; consulting to financial institutions, and consulting to businesses on banking matters.

Steve's forensic and litigation practice focuses on bankruptcy, lender liability, fidelity bond claims, bank fraud, money laundering, mortgage put-backs, directors' and officers' liability and litigation concerning all areas of lending, letters of credit and bank operations. He has provided testimony in state and federal courts, and at arbitrations and mediations.

As a banker and consultant, Steve has experience in lending matters including commercial loans, “OREO,” asset based loans, consumer loans, mortgage lending, subprime and predatory lending and letters of credit. He has experience with the origination, underwriting, closing, monitoring and collection of loans. He also has experience with financial institution operations, management and compliance.

Steve's experience includes serving as a Director of Dispute Consulting Services for a “Big Four” accounting firm, the Director of Financial Institutions Consulting for a national accounting firm, as well as serving as the president and/or director of three different banks during his fifteen year banking career. He has also served as a bank's interim CEO, Compliance Officer and Director during his consulting career.

Representative CASES and Assignments

• Served as the interim CEO and Director of a Federal Savings Bank on behalf of its sole shareholder, a NYSE listed insurance company, after a Cease and Desist Order was issued. Oversaw the operations of the bank, served as the BSA/Compliance Officer, responded to the requirements under the Order and liquidated over $700 Million in assets under management. (2006 – 2008)

• Conducted the investigations of failed banks, credit unions and savings and loans for evidence of fraud, negligence and/or professional malpractice for various state and federal regulators.

• Provided investigation and testimony relative to the successful defense of a fidelity bond claim on behalf of the insurer. The claim was filed by the acquirer of a bank after losses were incurred in a segment of the commercial loan portfolio.

• Assisted a large Canadian bank with due diligence on the accounts of a U.S. bank being acquired after evidence of potential money laundering surfaced.

• Investigated the closure of 45 credit unions and loan and investment banks, as well as the failure of a state deposit insurance fund. Testified before state officials at public hearings and in state court regarding criminal activity.

• Quantified economic damages considering the timing of specific events, or transactions or omissions, analyzing the causal links between liability and damages, and applying a computed cost of capital involving commercial, consumer and mortgage lending litigation matters.

• Provided consulting services to a State Attorney General's office and their outside counsel relative to allegations of conflicts of interest, breach of fiduciary duty and lack of disclosure concerning real estate investments for state pension funds.

• Provided consulting services to banks, savings and loans and regulatory agencies regarding troubled loan restructuring.

• Provided analysis and testimony regarding financial capacity for plaintiffs in a patent infringement matter involving two of the three largest manufacturers of modular furniture.

• Consulted to a large finance company as the largest creditor in a bankruptcy matter involving the tracing of sales proceeds, loan proceeds and inventory, as well as reconstructing financial records.

• Traced funds to and from various labor union accounts utilized in a large construction project for evidence of alleged money laundering.

• Investigated the alleged illegal practices of a “sub-prime” mortgage loan company that was found to be in violation of numerous Federal laws, and calculated potential damages for a 12 year period.

• Provided valuation reviews and mark-to-market valuations for financial institutions considering sale or acquisitions.

• Investigated an alleged fraudulent credit card scheme on behalf of two law firms retained by the Federal Deposit Insurance Corporation subsequent to the failure of a commercial bank in the Midwest.

• Provided assistance to the Trustee overseeing the liquidation of a securities broker – dealer. Assistance included help with discovery, review of documents, tracing of misappropriated funds and expert consulting concerning the broker's banking relationships.

• Assisted court appointed counsel with the defense of an attorney accused of tax evasion and fraud. Provided interview and deposition assistance as well as the review and critique of the Government's calculation of income, expenses, taxes, interest and penalties.

• Worked with inside counsel to a large international insurance company to assess a claim brought by a Fortune 100 company under a fidelity bond. The issues involved the diversion of payments being made on a portfolio of asset based loans.

• Performed a loan portfolio review for one of the largest banks in the Dominican Republic that included the review of the largest loans in the bank for credit quality, compliance with bank policy and local regulations, as well as the adequacy of the reserve for loan losses.

• Provided expert testimony at an arbitration hearing on behalf of the Republic of Uruguay concerning the failure of that country's largest privately owned bank.

• Performed a review of the exception loan process and loan loss reserve procedures of a national mortgage company on behalf of the parent bank.

• Provided expert consulting to counsel to a home builder facing criminal charges related to FHA guaranteed loans.

• Provided litigation consulting to counsel to an Australian software development company that brought suit against one of the world's largest banks for breach of contract and copyright infringement.

• Provided anti-money laundering policies, procedures and training for a Canadian based real estate investment firm to assist them in complying with the USPA due to their extensive US operations.

• Provided testimony at deposition and trial regarding proper endorsements and check processing

• Provided testimony in deposition and trial concerning the monetization of letters of credit

• Worked with bank management and its outside counsel to assemble a team of mortgage loan underwriters to re-underwrite residential mortgage loans leading to a “put-back” of loans pursuant to the terms of a purchase and sale agreement.

• Assisted outside counsel to a large commercial bank to settle claims including predatory lending, negligence and breach of contract, brought by one of its residential mortgage borrowers

• Assisted counsel to an on-line commercial bank to put back and receive a settlement from a large mortgage lender for a portfolio of residential mortgage loans that violated the terms of the purchase and sale agreement between the parties

• Provided pre-litigation consulting to counsel for mono-line insurance companies on multiple matters and retained as an expert witness for multiple litigations filed in various Residential Mortgage Backed Securities cases

• Retained as an expert on behalf of the Trustee of a bank holding company following the regulatory closure and sale of its subsidiary bank

EXPERT TESTIMONY EXPERIENCE – [See Attached Addendum]

Current professional and Civic affiliations

American Bar Association — Associate Member

Association of Certified Fraud Examiners – Member

Philadelphia Area Chapter, Association of Certified Fraud Examiners — Member

Robert Morris Associates / Risk Management Association — Member

Turnaround Management Association — Member

Association of Certified Anti – Money Laundering Specialists — Member

Counselor and Speaker, SCORE – Chester County Pennsylvania Chapter

PAST AFFILIATIONS

Chairman, President, Vice President and Treasurer, Southern Chester County Chamber of Commerce

Chairman, Small Business Council, Denver Chamber of Commerce

Chairman, Advisory Council to Office of Regulatory Reform (Colorado)

Chairman, Governor's Small Business Council Finance Committee (Colorado)

Director, University Hills Rotary Club (Denver, Colorado)

Member, Loan Committee, Colorado Title IX Revolving Loan Fund

Delegate, White House Conference on Small Business (1986)

Director, Denver's Growth Center

Director, Community Resource Center

Director, Colorado Statewide Development Corporation

Chairman, Guardian Advisory Council, National Federation of Independent Business

Speaker, U.S. Small Business Administration, Pre-Business Workshops, SCORE Programs

Member, U.S. Small Business Administration, Regional Advisory Board

Member, Greater Washington Board of Trade

Member, American Bankruptcy Institute

Member, Association of Insolvency Accountants

District of Columbia Bar Association — Associate Member

- Member, Financial Institutions Committee

Greater Washington Society of CPAs — Associate Member

- Member, Litigation Services Subcommittee

Philadelphia Bar Association – Associate Member

The Main Line Chamber of Commerce – Member of the Business Education Committee

Association of Certified Fraud Examiners – Member of the Financial Institutions Fraud Committee

Member, Delaware Bankers Association

President, Brittany Hills Homeowners Association

Director, Philadelphia Area Chapter, Association of Certified Fraud Examiners

Treasurer, New Garden Township Open Space Review Board

PUBLICATIONS and Presentations – [See Attached Addendum]