In separate actions between April and August, Banc of California, Enterprise Bank & Trust and Nano Banc sued the investor, Andrew Stupin, seeking to collect on loans worth a combined $108 million.
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Stupin, a long-time California real estate investor who owns a high school football team, is listed as a guarantor on loans and is one of the defendants in those cases.
PMF CA REIT, a real estate investment firm, has also sued Stupin and others to recover nearly $7 million, the filings show.
An attorney for Stupin said the Western Alliance claims against his client were unfounded and misrepresented the facts. Enterprise, Nano and Banc of California declined to comment. Jennifer Tullius, a lawyer representing PMF, said her client had no comment.
The lawsuits shine new light on the surprise losses last week at Zions and Western Alliance that spooked markets, with investors already on edge after the bankruptcies of U.S. auto parts supplier First Brands and car dealership Tricolor.
While shares rebounded, investors remain jittery. They fear a searing rally in stocks, driven by euphoria about artificial intelligence, has stretched valuations and created asset price bubbles, while the effects of the Trump administration’s tariffs and other policies are yet to work through the economy. In such an environment, bad surprises and signs of trouble that are not fully understood can quickly snowball, analysts said.
Regional banks tend to lend in concentrated local geographies and typically have a higher exposure to commercial real estate compared with the country’s largest lenders.
Investor behind Zions, Western Alliance bad loans is tied to $270 million in troubled debt
