Shortly before they shuttered Metro Bank in July 2010
, state examiners said they were startled to learn that most of the Miami lender's loans had been made in 2007
or later — well after the housing bubble had burst.
Court records show that 21 of Metro Dade's 28 largest bad loans were made from December 2006 to March 2009.
The bank continued making risky bets after examiners warned them to slow down. But instead of becoming conservative, Metro Bank ramped up lending by hiring two new loan officers and increasing its loans by $116 million in just two years.
To date, 80 percent of those loans have fallen into foreclosure.
A federal lawsuit filed against Metro Bank in January 2009 shows that one of the employees hired by the bank was David DiMuro, who brought with him a stable of clients from a prior job.
One of the biggest clients also happened to be a company in which DiMuro had a financial interest: Impact Development LLC.
DiMuro invested in Impact Development, steered a $9 million loan its way, and hid his relationship to the borrower from Metro Bank, a lawsuit alleges.
The two men who ran Impact Development ultimately defaulted and were hit with a $17 million judgment.
The company sued Metro Bank, saying DiMuro had a "clear conflict of interest." Attorneys denied many of the charges in court, and the FDIC took over as a defendant when Metro Bank failed in July 2010.
The company and the FDIC settled in September 2011. But court files contain no details about the agreement.
Two Metro bank directors did not return phone messages. Charles E. Brier, the chief executive, would not comment.
"I really can't help you," he said.