Former First State Exec Could be Barred by FDIC

A former executive of the Cranford-based lender that was shut down in 2011 over allegations of extending improper lines of credit, could be barred if the Federal Deposit Insurance Corp. has its say.

Douglas Conover stands accused of violating federal banking regulations while serving as the chief lending officer of First State Bank of Cranford and using the bank's assets as collateral for a loan benefiting its former chairman and chief executive officer, reported NJ.com.

The credit lines totaled $750,000 and offered more favorable terms than was available to the public.