Tag: U.S. Department of the Treasury

Stockholder Sues Horry County State Bank for Illegal Insider Trading

Stockholder Sues Horry County State Bank

Robert Shelley of Myrtle Beach, a shareholder in Horry County State Bank, recently filed a lawsuit against Horry County State Bank and its holding corporation HCSB Financial Corporation.

In the lawsuit, Shelley alleges he was contacted by employees of the bank in September 2009, a teller and later a bank officer, offering to sell him shares in the bank. Shelley further alleges that he was not provided a prospectus, as required by state law, and was not informed that the bank was in severe financial distress due to a large portfolio of defaulting real estate loans.