LA bank is latest lender to be ensnared in alleged fraud saga

Key insight: Preferred Bank has moved a $115 million block of loans, which are backed by multifamily and commercial real estate properties, to nonaccrual status.What's at stake: The $7.6 billion-asset Preferred is the latest bank to be ensnared in a saga involving alleged borrower fraud. Both Zions Bancorp. and Western Alliance Bancorp. have sued the entities, whose lawyer has denied wrongdoing.Forward look: Preferred believes it can resolve the nonaccrual credits by the end of the second quarter.Los Angele ...