MARSHALL – In a recently filed federal lawsuit, two Texas residents are accusing the president of a Sulphur Springs bank of taking money out of their certificate of deposit account and giving it to his son.

Ray Williams and Kathryn Williams filed a breach of contract lawsuit against The City National Bank of Sulphur Springs and bank President Lee R. Teetes on May 7 in the Marshall Division of the Eastern District of Texas.

According to court documents, Lee Teetes, the bank's president, contacted the plaintiffs on June 27, 2008, and asked them to cover the amount by which his son's account was overdrawn by loaning money from their Certificate of Deposit account.

The Williams state they told Teetes, that although they had loaned the son money in the past, they would not continue to do so.

The bank president reassured the plaintiffs that the bank would treat any money they provided as a loan to the bank and to Teetes. He also agreed to replace the money within seven to 10 business days, according to the complaint.

Under these conditions, the plaintiffs agreed to allow Teetes to withdraw $100,000 from their CD account, the complaint states. The defendants repaid a total of $77,008.97 to the plaintiff's account. However, according to the plaintiffs, the remainder of the balance remains past due.

Causes of action filed against the defendants include theft of property, conversion of personal property, deceptive trade practice act claims, breach of contract and breach of express warranty for services.

The plaintiffs are also accusing the defendants of withdrawing additional amounts of $12,059 and $50,000 from their CD account without authorization.

The plaintiffs are seeking actual damages in the amount of $85,050, additional damages under the Texas Deceptive Trade Practices Act and Texas Theft Liability Act, exemplary damages, interest, attorney's fees and costs of court.

Attorneys Alan J. Robertson of Sloan, Bagley, Hatcher & Perry Law Firm in Longview and Thomas H. Brown of the Law Office of Thomas H. Brown in Kilgore are representing the plaintiffs.

U.S. District Judge T. John Ward is assigned to the litigation.

Case No. 2:10cv00150

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