[ by Melanie Gretchen ] The SEC charged BankAtlantic Bancorp and its CEO and Chairman, Alan Levan, with misleading investors about growing problems in its commercial residential real estate land acquisition and development portfolio portfolios early in the financial crisis.  BankAtlantic Bancorp is the holding company for BankAtlantic, one of Florida's largest banks. SEC Findings and Allegations. Allegedly using misleading statements in public filings and earnings calls, the bank and Mr. Levan hid the declining state of a large portion of the portfolio in 2007.  They then committed accounting fraud when they plotted to minimize BankAtlantic’s losses on company's books by improperly recording loans they were trying to sell from this portfolio in late 2007. The SEC's complaint filed in U.S. District Court for the Southern District of Florida details that the bank and Mr. Levan knew of the portfolio's decline:

• Many of the loans had required extensions due to borrowers’ inability to meet their loan obligations.
• Through his involvement on the bank’s Major Loan Committee, that approved extensions and principal increases, Levan knew some loans were kept current only by extending the loan terms or by replenishing the interest reserves from an increase in the loan principal.
• Many of the loans had been internally downgraded to non-passing status, indicating the bank was deeply concerned about those loans.

Response from the Defendants. According to Eugene Stearns, lawyer for Mr. Levan and BankAtlantic's holding company, the SEC's case was an example of "scapegoating" and that the company's financial disclosures were adequate.  He further noted that, in the fall of 2007, the company voluntarily issued extra disclosures about the risk classifications of its loans, and even before that, the bank company was clear about its risk profile.  Mr. Stearns added that all of the bank regulators overseeing the company had taken the position that banks should not release details about the risk classifications on loans. Dick Bove in the Middle of the Storm. Securities analyst Richard Bove featured Levan and BankAtlantic in a 2010 New York Times article about his battle with the company.  BankAtlantic sued Bove over a report he wrote at the height of financial crisis evaluating the health of a long list of banks, including the Florida bank.  The report, titled "Who Is Next?" appeared just after IndyMac collapsed, and as bank investors fled from bank stocks.  Mr. Bove at the time said that he had to fight the suit to protect the interests of analysts to freely produce their research reports.  The suit ultimately was settled. On Wednesday, after the SEC filed its case, Mr. Bove was asked if he felt vindicated.  He answered that he did not because he had $700,000 in legal fees, adding, "There's no vindication if all you did was walk away with a huge hole in your pocket." The SEC's complaint ... filed this week says the Commission seeks financial penalties and permanent injunctive relief against BankAtlantic and Levan, and seeks to bar Levan from ever serving as an officer and director. Visit the SEC for [the complete complaint] and [the press release].