Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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1986
Falsified financial statements and bribery
Jose Gomez, a partner at Alexander Grant & Company, was found to have accepted bribes to falsify ESM's financial statements. Gomez and several ESM-connected individuals later pleaded guilty.
1985
Fraud and duplicated collateral
Investigators found that ESM had suffered large operating losses and had pledged the same collateral to multiple lenders. The SEC shut down the company and placed it into receivership; initial estimated losses exceeded $300 million.
1985
Collapse of Home State Savings Bank
Home State, ESM's largest customer, faced an estimated loss of about $150 million. The resulting depositor run led to the bank's closure and helped set off a wider Ohio deposit-guarantee crisis.