Reel life drama

Michael Steinberg, the SAC Capital Advisors portfolio manager named as an unindicted co-conspirator in a $62 million insider-trading scheme, once harbored Hollywood dreams.

But before the 40-year-old hedgie ever got to Tinseltown, the dream died in a nasty dispute with a college pal — who accused Steinberg in 2006 of violating financial rules and regulations, The Post has learned.

The accusations, vague and unsubstantiated, came as the friendship seemed to burn out.

In 2005, Steinberg paid former college roommate Adam Resnick $1,000 for his life story. Resnick had a gambling addiction that helped bring down a Chicago bank in 2002.

Steinberg aimed to produce a major motion picture, documentary or television mini series based on Resnick’s topsy-turvy life, according to a draft “settlement agreement” obtained by The Post.

Resnick spent 19 months in prison on fraud charges related to the bank failure.

Steinberg sought to sell back to Resnick his life story in 2006 for $101,500 after an apparent falling out between the producer and muse.

As part of a 2006 draft settlement agreement, Steinberg asked Resnick to recant statements he had made “concerning Steinberg’s ethics and alleged illegal conduct.”

Among the accusations he wanted Resnick to take back was that Steinberg “violated, either personally or professionally, any SEC, NASD or IRS regulations,” the document shows. Steinberg also asked Resnick to recant statements regarding his taxes, according to the unsigned agreement.

Resnick, reached by The Post, said he entered talks but never signed the agreement. He declined to comment on the nature of the accusations against Steinberg.

Steinberg’s lawyer on the settlement talks, Steven Riker, declined to comment. Steinberg’s current lawyer, Barry Berke, didn’t return a request for comment.

Fast-forward to today, and Steinberg’s own life has become the stuff of a Hollywood screenplay.

In September, Steinberg was named as an unindicted co-conspirator in the Anthony Chiasson and Todd Newman trial now unspooling in federal court.

That month, Steinberg’s former analyst at a unit of SAC, Jon Horvath, pleaded guilty to giving non-public stock tips on Dell and Nvidia to his boss to trade on between 2007 and 2009. That boss has been fingered as Steinberg.

Steinberg, on leave from SAC, hasn’t been charged with any wrongdoing.

Resnick, 32 years old when he was indicted for the bank fraud, has been back in the headlines again recently — this time for legit acts.

The 40-year-old blew the whistle on a nursing-home kickback scheme that forced Omnicare to fork over $98 million.

Resnick gave $2 million of the reward he received for his Omnicare action to Uncle Sam as restitution.

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California Pizza Kitchen brings prototype to Sawgrass Mills

The restaurant chain that took barbecued chicken pizza mainstream is ready to push the culinary envelope again. How about a pizza topped with roasted Brussels sprouts and applewood smoked bacon or a Korean barbecue pizza with pork loin and spicy kimchee salad?

Innovative menu items are just one piece of what’s unique about California Pizza Kitchen’s new flagship restaurant unveiled Thursday at Sawgrass Mills in Sunrise. The first of its kind, the Sawgrass location aims to reinvigorate the brand that started in 1985 in Beverly Hills.

“The whole idea is about taking the best of what put us on the map and making it relevant for 2012 and beyond,” said G.J. Hart, who took over as chief executive officer of the chain just over a year ago. “Over the years the brand morphed from being a leader and it became a follower of food trends. We want to bring back the hip, cool feel.”

The changes are obvious from the moment you walk into the restaurant, which opens to the public Monday. The new look is all about focusing on the chain’s California roots. Very little of the bright yellow and chrome remains. The design is California-casual with earth tones and reclaimed wood everywhere from the walls to the floor and tables. An outdoor terrace with couches and fire pits is designed to encourage lingering. Large windows and glass doors let in lots of natural light and fold open to enjoy the weather.

Pizza is center stage with the kitchen designed so diners can watch the pizza makers at work. At the Sawgrass location — and by mid-2013 at all restaurants — pizzas will once again by hand-tossed. Currently the chain uses a pizza press to make the dough more uniform.

The new focus is on upping the culinary quotient across the board with dishes like a roasted beets and whipped goat cheese salad, plus a sweet pea carbonara featuring pea-filled pasta purses tossed with Italian pancetta and a Romano cream sauce. These are some of the unique items only on the Sawgrass menu, which also features a specialty menu of hand-crafted cocktails.

Chain-wide the company has actually slimmed the menu from more than 100 items to 74 in order to improve execution. But there are also more healthy choices like quinoa and arugula salad or a fire-roasted chile relleno stuffed with chicken, cheese, mushrooms, spinach and eggplant that dishes up at only 380 calories.

“As we grew, we didn’t keep up with the creativity on the menu and we tried to be all things to all people,” said Brian Sullivan, senior vice president of culinary innovation, who has been with the company for 24 years. “We’re always going to be pizza-centric. But we’ll continue to push the envelope with these specialty items that resonate with who we are. We don’t want items that you are going to see in other restaurants.”

The chain chose Sawgrass to unveil its new flagship location because of a combination of the area’s diverse demographic base and the influx of international visitors. South Florida has already been a strong market for the brand, which has seven locations in the tri-county area stretching from Coral Gables to Palm Beach Gardens.

The opening is the culmination of a new vision that began to take shape when Golden Gate Capital purchased California Pizza Kitchen in July 2011 for $470 million, taking the company private and bringing in Hart as the new chief executive.

“They saw a brand that was undervalued,” said Hart, who has an ownership stake in the chain. “This is an iconic brand with so much brand equity. If we can bring the excitement and enthusiasm back we’re only going to see it go up.”

Industry experts say the changes make sense because the brand still has a loyal following, although it has not kept pace with the competition.

“It’s a good time for them to go back to what were the fundamental things that made the brand so intriguing,” said Dennis Lombardi of WD Partners, a restaurant industry consultant. “The difficulty is going to be getting the word out to consumers that this is different. The devil is always in the details in these kind of evolutions.”

Based on consumer reaction, the plan is to take pieces of the Sunrise concept and introduce it into the chain’s other 268 existing restaurants. Some restaurants could be completely remodeled, but most will only get elements of the new prototype, which cost $2 million in Sunrise, Hart said. The company’s Fort Lauderdale and Boca Raton locations could be strong candidates for remodeling next year or early 2014, he said.

Community and business leaders, who got a first look at the restaurant on Thursday, were impressed.

“This is phenomenal,” said Luanne Lenberg, general manager of Sawgrass Mills. “We’re so excited to have this caliber of restaurant and to be their test for the rest of the world.”

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Miami-Dade ethics board rebukes two city of Miami commissioners

The county ethics commission dinged Miami Commissioner Frank Carollo this week for phoning the police chief after Carollo was pulled over for a traffic stop.

Separately, Miami Commission Vice Chairman Marc Sarnoff was reprimanded for not filing a gift disclosure when the Greater Miami Convention & Visitors Bureau paid his way to Brazil.

Sarnoff said his travels did not constitute a gift because he carried out public business. “I did everything I could do, including getting legal advice, to determine that the trip was not a gift,” he said.

Carollo denied wrongdoing in a response to the Miami-Dade Commission on Ethics and Public Trust written by his attorney. He declined comment Wednesday.

The grievance against Carollo said that he called Miami Police Chief Manuel Orosa during a traffic stop in Coconut Grove in August. Carollo was pulled over after attempting to drive his black Lexus around a stopped recycling truck. He called the chief, who called the district commander, who reached out to the officer making the traffic stop.

The officer let Carollo go with a warning.

In the written response to the ethics commission, Carollo’s attorney said the commissioner had never asked Orosa for special treatment. Rather, Carollo called the chief “to inquire ‘what the problem was’ since the circumstances seemed odd.”

The “odd circumstances” included another car stop in the area.

“Commissioner Carollo’s request for a status [report] was well within his authority to communicate with the police chief, and was not accompanied by any request to obtain any resolution of the vehicle stop,” attorney Benedict Kuehne wrote.

Kuehne added: “The officer made the very reasonable decision to issue no traffic citation because the circumstances did not warrant the issuance of a ticket.”

Orosa also told investigators that Carollo had not asked for any favors.

But the ethics commission concluded that Carollo “clearly intended to use his influence with the police chief to avoid a traffic citation.”

“There was no legitimate reason for Carollo to call the chief of police other than to put into motion a chain of events that Carollo hoped would extricate him from a traffic situation that ordinary citizens find themselves in every day,” the ethics commission wrote.

The complaint against Sarnoff involved a trip he and his wife took to Brazil in April.

The pair went to watch the yachts in the Volvo Ocean Race depart Itajai for Miami, the next port of call. Sarnoff also travelled to Rio and Sao Paulo, with the Convention & Visitors Bureau footing the bill for his travel, lodging and meals.

Sarnoff did not disclose the trip as a gift, nor did he disclose that the Volvo Ocean Race had reimbursed him for his wife’s roundtrip airfare.

Sarnoff said he was acting on advice from Miami City Attorney Julie O. Bru. In a legal opinion, Bru said disclosure was unnecessary because the trip did not constitute a gift, but rather city business.

“I never held this secret,” Sarnoff said. “I did everything I was supposed to do. I talked about it openly.” He described the trip as “105 percent work.”

As for Teresa Sarnoff’s travel expenses, Marc Sarnoff said they, too, were incurred during “official” city business.

“The commissioner was unquestionably assisted in his official duties by Ms. Sarnoff and he quite honestly believed that Ms. Sarnoff was conducting city business,” Sarnoff’s attorney, John Dellagloria, wrote in a response to the ethics commission’s findings.

The ethics commission has said that elected officials don’t have to declare tickets to local events they attend for professional reasons. But according to the final report on the Sarnoff case, “all-expense paid trips to distant and exotic locales deserve different consideration since the grandiose scale of the gift creates a larger appearance of impropriety.”

The ethics commission will send a letter to Sarnoff suggesting he report his wife’s travel expenses as a gift. Another letter will be sent to the Miami city attorney to clarify when business trips must be reported as gifts.

The two complaints were filed last month by blogger Al Crespo.

Sarnoff also took a trip to China this year, where he watched the Miami Heat play a preseason game against the Los Angeles Clippers. In October, Sarnoff said the Heat paid for his flight and hotel. On Wednesday, he said the Shanghai Sports Bureau paid for him and his wife.

He now plans to declare that trip as a gift, he said.

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New Knight joust

A bidding war for Knight Capital is heating up.

The broker-dealer that was on the brink of extinction four months ago is slated to get a second offer — this one from Virtu Financial — today or tomorrow, sources familiar with the situation told The Post.

A Virtu offer to purchase the Wall Street trading firm run by CEO Tom Joyce would come as a rival offer from Getco Holding Co. — said to be a $3.50-a-share cash and stock bid — values Knight at roughly $1 billion.

Getco’s bid and Virtu’s pending all-cash offer helped pump Knight’s stock up 15.2 percent yesterday, to $3.42.

Bloomberg

It’s unknown whether Tom Joyce will survive as head of embattled Knight Capital, which has attracted two bids.

Shares of the embattled Jersey City, NJ, company are up more than 40 percent since news of a potential sale emerged.

Still, the broker-dealer’s shares are off 71 percent for the year after a technical snafu in its trading programs resulted in a massive $440 million loss.

The loss forced Joyce’s Knight to seek a white knight on Wall Street — which ended up being a Getco-led consortium.

Once the Virtu offer is submitted, Knight’s board will review both deals and make a decision by year end to either pursue a merger or remain an independent company, sources said.

Getco’s $3.50 offer translates into a relatively meager 2 percent premium to Knight’s $3.42 close.

Investors are hoping for a higher offer from Virtu.

The bid from Virtu will be $3 a share, according to reports. Shares are trading above that level, perhaps, because the Virtu offer has yet to be made official.

Although Virtu’s bid is lower, investors typically prefer the certainty of all-cash deals.

Joyce, a respected veteran among the Street equity trading houses, suffered an embarrassing fall from grace due to the trading glitch that made his firm vulnerable.

The broker-dealer is part owned by six investors, including Getco, brokerage firm Jefferies & Co., Blackstone Group, Stifel Nicolaus, TD Ameritrade and Stephens Inc.

mark.decambre@nypost.com

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Gift ideas for the techie on your list

The holidays are coming fast, and if you’re like me, you’ve probably gotten very little of your gift shopping done.

Here are suggestions for a variety of gifts for the techie and the not-so-techie people on your list.

Some of these items can be found in stores and some are only available online, but you should be able to order them in time for Christmas or Hanukkah.

IOMEGA EZ MEDIA & BACKUP CENTER

What is it? A hard drive that lives on your home network so you can share files, store all your photos and music and back up your home computers. Works on Macintosh, Windows and Linux computers.

The EZ Media & Backup Center is available in 1-, 2- and 3-terabyte capacities. It is simple to set up. It lives next to your home router and plugs into the network via Ethernet.

Major features include a built-in iTunes server so your music is available to all connected computers, Time Machine support for easy Macintosh backups and Iomega’s Personal Cloud to access your data from any Internet connection.

It can also stream your video files to your TV if you’ve got a compatible streaming box or an Internet-connected TV.

Software for backing up Windows PCs is also included.

Who’s it for? Any family that wants central storage for their digital lives. This is a great home for your digital photo, music or video library.

What does it cost? One terabyte for $169.99, two terabytes for $209.99, three terabytes for $279.99.

Where can you get it? Online at www.iomega.com, Amazon, Best Buy, Apple store, Fry’s.

NETATMO URBAN WEATHER STATION

What is it? A wireless indoor/outdoor weather station that displays through an application on your Apple or Android mobile device.

There are two parts, one that lives in your house and one you place outside.

The indoor component plugs into the wall and monitors the temperature, humidity, barometric pressure, carbon dioxide level and even the sound level in decibels.

The outdoor module is battery-powered and measures temperature and humidity.

Once you connect the Netatmo to your home Wi-Fi network, you can download the free app and see your weather stats from anywhere.

Setup was easy enough, and you can set the app to notify you when carbon dioxide rises to levels that you should be warned about — which is great.

Who’s it for? Weather geeks and people who like to know what the temperature is without having to fire up a browser.

What does it cost? $179

Where can you get it? www.netatmo.com

3M LED ADVANCED LIGHT

What is it? 3M’s first foray into the home light bulb market is with the LED Advanced Light, which uses light-emitting diodes (LED) to produce 800 lumens (the light of a 60-watt bulb).

The Advanced Light has a life span of 25 years and costs just $1.63 per year if it’s turned on for three hours per day.

The bulb lights instantly and is dimmable.

It’s a little intimidating to start buying light bulbs that might outlive me, but my wallet approves.

Who’s it for? Anyone who wants to save money or wants a bulb that might not have to be changed until 2035.

What does it cost? $25

Where can you get it? Select Wal-Mart stores. For more information, go to www.3mlighting.com/LED.

STEM IZON 2.0 WI-FI VIDEO MONITOR

What is it? A small, wireless video camera that you can monitor remotely with an iOS device.

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Citizens leader criticize media coverage of firm’s problems

TALLAHASSEE --
Beleaguered by allegations of corporate misconduct and exorbitant executive spending, leaders at Citizens Property Insurance Corp. expressed outrage — at the media.

During a special hearing on Tuesday to address several corporate improprieties first reported by the Times/Herald, Citizens CEO Barry Gilway reserved some of his harshest criticism for news outlets that uncovered the laundry list of scandals at the state-run company.

“I am committed to making sure the reputations of innocent employees are appropriately protected,” said Gilway, claiming that reporters had defamed former Citizens employees accused of wrongdoing.

Gilway used words like “preposterous,” “absurd,” “pathetic,” and “shameful,” when discussing media coverage of the company’s internal troubles.

He defended his top officials — who have been beset by a laundry list of scandalous allegations in recent months, including questionable severance packages, sexual impropriety, and falsified documents.

The board largely voiced support of Gilway — who took the helm of the state-run insurer in June — and saved criticism for the media, the former CEO and a few “bad apple” employees.

In recent months, at least two top executives at Citizens have resigned and Gov. Rick Scott has called for two separate investigations into its top management.

Gilway stood by a claim that Citizens terminated internal investigators who discovered the misconduct as part of a company restructuring effort – not as retaliation for exposing the company’s dirty laundry.

Scott’s chief inspector general is looking into the terminations.

Gilway and board members acknowledged that Citizens needed to make some changes, and said the company is beginning to take “corrective action” to address the various scandals.

“We have a new day in this company,” said board chairman Carlos Lacasa. “And we will win back the credibility of the company in the eyes of the public.”

Lacasa also lashed out at the media, referring specifically to a recent editorial in the Palm Beach Post that branded Citizens a “corruption-ridden scam artist that threatens Florida’s economic recovery.”

Such media criticism of Citizens is “shameful” and “designed to incite the public,” he said.

Homeowners covered by Citizens have expressed outrage this year over the company’s unpopular home re-inspection program, an 11-percent rate hike and news that executives were spending upwards of $600 per night for luxury hotel rooms across the globe.

Scott’s inspector general is investigating such expenditures.

“The state of Florida gave them this blanket ability to pull in money from homeowners,” said Sharon Goessel, a 65-year-old from Palmetto Bay whose Citizens insurance rates are skyrocketing. “I want to be one of those executives at Citizens and go spend the night in a $580 hotel room.”

Sean Shaw, a former insurance consumer advocate who works for a law firm that represents insurance policyholders, blasted the board at Citizens and called for the resignation of top executives.

“Instead of spending time talking about fixing abuses of the public trust, the board seems more interested in blaming the media for finding out about it,” he said.

Some board members attacked Shaw, whose employer regularly battles Citizens in court, as someone who “has a direct financial stake” in seeing the company tarnished.

The board had less criticism for former employees and executives whose actions sullied Citizens’ reputation, including the underwriting executive who resigned after a sex scandal blew up and the Chief Administration Officer who resigned after several allegations of misconduct occurred within her unit.

Both received lucrative agreements worth tens of thousands of dollars after resigning, and Citizens helped the underwriting executive apply for unemployment compensation.

Gilway stopped short of criticizing the hefty severance agreements, but said a new policy will be drafted to clean up the process.

Citizens’ board also spent much of Tuesday’s meeting discussing the company’s preliminary budget for next year.

The company expects to shrink from about 1.5 million policies to 1.2 million policies by the end of 2013, advancing Gov. Rick Scott’s push to downsize the state-backed insurer.

“Unlike the private sector, that’s a good thing if we’re shrinking,” said Chief Financial Officer Sharon Binnun.

Toluse Olorunnipa can be reached at tolorunnipa@MiamiHerald.com or on Twitter at @ToluseO.

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Play Your Wii U Anywhere — Even on a Train

Wii U on a Train

No need for a TV set. If you plug the Wii U in, you can interact entirely with the GamePad. This is on a Japanese Shinkansen, a high-speed train.

Click here to view this gallery.

[More from Mashable: Nintendo Unveils Wii Mini for the Canucks]

Nintendo’s new Wii U console may have one real advantage over the competition: portability. Since you don’t need a television to play a good portion of the Wii U titles, gaming on the road is as easy as locating a power outlet.

Rocket News 24 tested the console’s mobility by taking a Wii U on a Japanese bullet train, which has power outlets at every seat. Thanks to that — and a little iPhone tethering magic — their staff was able to play New Super Mario Brothers U and Call of Duty Black Ops 2 while riding comfortably.

[More from Mashable: Wii U Sells 400,000 Units in First Week]

Check out Rocket News 24 to see more pictures and a full recount of their experience.

This story originally published on Mashable here.

Gaming News Headlines – Yahoo! News

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Dennis Quaid Runs Vegas

Dennis Quaid stars as Sheriff Ralph Lamb on the CBS drama Vegas and the actor dished to ET Canada about the romances and rivalries of the show.

PICS: What Happened in Vegas This Weekend

Inspired by the story of the real-life former Sheriff of Las Vegas, the show is set in the 1960s and follows Lamb as he battles notorious gangster Vincent Savino (Michael Chiklis), who's planning a Sin City take over.

In the midst of all the blood sport and gun play, there's also a budding love story between Lamb and Katherine O'Connell (Carrie-Anne Moss).

"The two characters have known each other all their lives," said Quaid. "There's already a relationship there, but where it's going to wind up ... Who knows?"

VIDEO: Vegas Hearkens Back to Sin City in the '60s

Watch the video for more. Vegas airs Tuesdays at 10/9c on CBS.

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Iran sitting prettier

John Bolton

Iran, unfortunately, has grown stronger from the recent Israel-Hamas hostilities.

Despite media concentration on last week’s cease-fire, the real focal point is still the invisible Middle Eastern struggle for strategic advantage. There, Iran was already gaining ground, as the International Atomic Energy Agency reported on Nov. 16: Tehran’s extensive nuclear program continues its rapid progress, and it is still stonewalling IAEA inspectors. There is no doubt where Iran is headed.

The mullahs’ priority isn’t the Israel-Palestinian relationship, but whether Israel has the will and the capability to attack Iran’s nuclear-weapons program. Thus, despite Hamas’ terrorist aggression, launching over 1,500 rockets against Israel’s civilian population, Tehran’s central concern was the small number of Fajr-5 missiles targeted on Tel Aviv and Jerusalem.

EPA

Getting set to shoot at Israeli jets: Iranian soldiers prep a new surface-to-air missile for launch in week-long war games this month.

These launches confirm what has long been suspected, namely that Iran had armed Hamas (as it has armed Hezbollah terrorists in Lebanon) with longer-range missiles. And the November clashes provided a combat environment for Iran to test-fire the Fajr-5s from Gaza.

True, Israel’s Iron Dome missile-defense system performed extremely well, a palpable reminder to Americans (especially to President Obama, a long-term opponent of national missile defense for the United States) of the importance of this capability. But Iran also learned a good deal about Iron Dome — and in the never-ceasing struggle between offense and defense, will be better prepared for having had this “dry run” against Israeli defenses.

How will Iran retaliate if its nuclear-weapons facilities are struck pre-emptively? It has several options, including closing the Strait of Hormuz or directly attacking Israel, but its most likely response is indirect. With terrorist allies in place in both Lebanon and Gaza, Tehran is in effect positioned behind Israeli lines, encircling the tiny country and making it much harder to defend.

The Israeli air force can’t be in three places at once, attacking Iran’s nuclear facilities while also trying to suppress missile attacks from both Lebanon’s Bekaa valley and Gaza. And given the inevitable losses Israel will suffer over Iran, Israel’s air assets could be stretched beyond their limits.

Thus, Iran’s ability to inflict unacceptable casualties on Israeli civilians via its terror proxies, all the while maintaining at least a shred of deniability for such attacks, is a powerful element in any Israeli government’s calculation whether to strike Iran pre-emptively.

Have a comment on this PostOpinion column? Send it in to LETTERS@NYPOST.COM!

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Shareholders approve sale of U.S. Century Bank

A majority of U.S. Century Bank’s shareholders approved the Doral bank’s proposed sale to C1 Bank of St. Petersburg late Tuesday during a meeting at Florida International University despite dissension from some stockholders, including those who have filed suit against the bank and some of its directors and officers.

According to the terms of the deal, the bank’s 441 shareholders will receive $2.5 million from the sale, or about 1.7 cents on the dollar, from $150.1 million U.S. Century raised from multiple offerings since it was founded 10 years ago.

The sale agreement, which required approval from holders of 51 percent of the shares, still requires approval from federal banking regulators. Seventy-four shareholders attended Tuesday evening’s meeting.

The deal to sell U.S. Century to C1, reached Aug. 30, includes a proposed, renegotiated $6.27 million repayment to the federal government of $50.2 million in TARP funds. The U.S. Treasury Department must approve the proposed TARP (Troubled Asset Relief Program) repayment. According to documents, the deal also includes up to $400,000 to be paid by C1 to regulators should U.S. Century be fined over Bank Secrecy Act violations found in its recent regulatory examination.

The bank has said the sale is expected to be completed by year-end.

A group of shareholders has filed a “derivative action” suit, which seeks to recover money from the bank that allegedly resulted from the wrongdoing of the bank’s directors and officers.

The suit was filed Nov. 13 in Miami-Dade Circuit Court by brothers Carlos R. Silva and Jorge E. Silva, both Coral Gables attorneys and founding shareholders, and last week was amended to include several additional shareholders — including Shoma Group head Masoud Shojaee — totaling more than $10 million in original investments, said Coral Gables attorney Gonzalo Dorta who represents the shareholders who filed the suit against the bank and some of its current and former officers and directors. Among the defendants are Telemundo executive Jose Cancela, homebuilder Sergio Pino — who formerly owned U.S. Century’s headquarters building, and public affairs businessman and lobbyist Rodney Barreto.

“I feel terrible,” Carlos Silva said after the meeting. He estimated the losses that he and his brother sustained at $400,000. “We all lost a lot of money.”

“This bank was basically run by a group of individuals like it was their personal bank to finance their speculative real estate construction activity at the expense of others,” Dorta said before Tuesday’s meeting.

U.S. Century said in a statement that the bank is in the process of reviewing the suit and is “not at liberty to discuss it further until we have completed the review process and consulted with our legal counsel.”

U.S. Century was founded by a group of prominent, largely Cuban-American investors, many of whom are local business leaders, real estate developers and attorneys.

Among the issues raised in the lawsuit, the bank acknowledges that it has made loans to current and former directors, and a third of its 24 branches are leased from current or former directors.

Current and former directors of the bank hold a significant portion of the bank’s shares, several sources said.

U.S. Century has been struggling since the real estate downturn and recession. Founded in 2002, U.S. Century is operating under a June 2011 regulatory consent order mandating it to boost capital, reduce its bad loans and return to profitability, among other requirements. Last year, it hired Japanese investment bank Nomura Securities to try to raise at least $150 million in private equity funds.

C1, privately owned by four investors, including two Brazilians, is proposing to inject $100 million of fresh capital into the combined bank.

The deal would give the growing C1 Bank 24 branches in Miami-Dade and Broward counties and nearly $1.2 billion in assets.

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