Silvergate Capital Examiner Finds Board Investigation Deficient

An independent director’s investigation into the parent company of defunct Silvergate Bank and support for a plan to release executives from legal liabilities is tainted by procedural and substantive gaps, a court-appointed examiner said.

A December report authored by Silvergate Capital Corp. director Ivona Smith suffers from several deficiencies and a conflict of interest because she used a law firm employed by the company to conduct her investigation, according to redacted papers filed by examiner Stephanie Wickouski with the US Bankruptcy Court for the District of Delaware.

Smith concluded in her special investigation committee report that it’s in the best ...