The lawsuit claims more than half a million dollars was spent on a wedding and a Monte Carlo board meeting and helped push the bank into its 2009 failure.
The Chicago Sun-Times reports the lawsuit filed in Chicago alleges bank president Amrish Mahajan authorized $495,000 in a series of "advances" and "bonuses" to himself. The money was used to defend his wife, Anita Mahajan, against allegations she charged the state for services her now-defunct drug-testing firm never performed. She eventually pleaded guilty to a less serious charge and received probation.
The lawsuit targets Amrish Mahajan and other bank officers and board members. The Sun-Times reports an attorney for Mahajan couldn't be reached Monday for comment.
The Associated Press contributed to this report.
