The following is an article by Crains New York Business:

LibertyPointe Bank, an institution co-founded four years ago by developer Shaya Boymelgreen, has been ordered by federal regulators to cease and desist from excessively risky lending.
 
The bank, which is headquartered in lower Manhattan, was deemed to operating with excessive levels of delinquent loans, setting aside inadequate allowances for loan losses, and overly concentrating its portfolio in commercial real estate lending, according to the order dated July 16 but posted Friday on the Federal Deposit Insurance Corp.’s Web site.
 
The bank’s chief executive, Merton Corn, wasn’t immediately available for comment.
 
LibertyPointe, which operates one branch in Manhattan and two in Brooklyn, caters largely to the Orthodox Jewish community. It had $222 million in assets, $207 million in deposits, and $11.8 million in capital as of the quarter ending June 30. Its total risk-based capital ratio of 8.3% puts it below the FDIC’s definition of a well-capitalized bank, as such it could be forced to raise fresh funds.
 
In addition, LibertyPointe’s $182 million portfolio seems to have a high amount of troubled assets.
 
About $13 million worth of loans secured by multi-family properties are labeled as non-accruing, which suggests the borrowers haven’t made interest payments in more than 90 days. About another $10 million in construction loans are also described as such. Non-accruing loans often end up being written off at a loss.
 
The levels of non-accruing loans amount to more than double the bank’s capital and triple its $7.1 million allowance for anticipated loan losses.
 
The bank’s chairman, Mr. Boymelgreen, is having troubles in other areas. His company, Boymelgreen Capital, last week notified stock market authorities in Tel Aviv that a subsidiary may default on a bond payment, according to the Israeli newspaper Globes. Last month, another subsidiary sold interests in 12 Sheraton hotels in Israel to reduce debt.
 
Mr. Boymelgreen’s Manhattan holdings include the old J.P. Morgan headquarters building at 15 Broad Street, which he converted to residential condominiums.

(Source: Crains NY – Aaron Elstein)