Troubles continued to mount Friday for the now-closed Central States Mortgage Corp., hit by a state judge's order effectively freezing $2.3 million in assets and the reported dismissal of key management earlier in the week.
The $2.3 million hold, was approved Thursday by Milwaukee County Circuit Judge David Hansher in an emergency hearing.
The judge's temporary restraining order against the beleaguered CSMC, whose lending business has suffered large losses, came on a suit brought by Associated Bank, a subsidiary of the $25 billion Associated Banc-Corp of Green Bay. Earlier suits have been filed by other Midwest banks with Members United Corporate FCU seeking repayment of a $33 million defaulted note apparently forcing CSMC "suspension of business" March 9.
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