WSFG Wsb Financial Grp. (MM)

Stock price in sharp decline after SEC filing SEATTLE, Oct. 26 /PRNewswire/ -- Hagens Berman Sobol Shapiro announced today it is beginning an investigation of Bremerton, Wash.-based WSB Financial Group Inc. (NASDAQ:WSFG), holding company of Westsound Bank. The firm is investigating possible securities fraud legal action on behalf of investors who purchased the shares of WSB Financial Group Inc. On Wednesday October 24, 2007 the company announced that state and federal regulators are looking into possible fraud and misconduct in its real-estate lending practices causing the company's shares to plummet 42.9 percent. In documents filed with the Securities and Exchange Commission (SEC) on October 23, 2007, WSB Financial revealed that examiners from the Federal Deposit Insurance Corporation and the Washington Department of Financial Institutions recently told management they believed the bank "violated certain banking laws and regulations which are primarily related to the origination, administration and monitoring of construction and mortgage loans." According to the SEC filings, WSB reported "the examiners advised that they intend to recommend that the FDIC and DFI take regulatory action against the Bank with respect to such lending practices and activities, which may include a cease and desist order, monetary penalties, further increases in allowances for loan losses, reserves and/or charge-offs." The SEC filing states "the company has been cooperating in an investigation by the regulators pertaining to certain past activities involving former employees and third parties, including possible fraud, misconduct and other violations with respect to the application, processing and approval of certain loans previously made." WSB stated in its filing, "the company is also conducting its own internal investigation into the issues surrounding the past activities of mortgage and construction loan origination, and plans to retain an independent auditor to analyze these loans, particularly construction loans and assist the company and its management in determining the appropriate level of loan loss allowances, reserves or charge-offs with respect to such loans." At the same time the Company has announced that its chief financial officer, Mark Freeman, asked for and received a leave of absence to deal with unspecified "health reasons," according to SEC filings. If you have further information concerning these facts or are a shareholder and want to be kept apprised of the investigation or of possible legal action, you can e-mail the firm at or call 206-623-7292. More information is available at http://www.hbsslaw.com/wsfg.htm. About Hagens Berman Sobol Shapiro Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Cambridge, Los Angeles, Phoenix and San Francisco. Since 1993, it has developed a nationally recognized practice in class-action and complex litigation. Among recent successes, HBSS has negotiated a $300 million settlement in the DRAM memory antitrust litigation, one of the largest anti-trust settlements in history; a $340 million recovery on behalf of Enron employees; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS served as counsel in a $850 million Washington Public Power Supply settlement and represented Washington and 12 other states against the tobacco industry that resulted in the largest settlement in history. For a complete listing of HBSS cases, visit http://www.hbsslaw.com/. CONTACTS: Steve Berman (206) 623-7292 Hagens Berman Sobol Shapiro Mark Firmani (206) 443-9357 Firmani + Associates Inc. DATASOURCE: Hagens Berman Sobol Shapiro CONTACT: Steve Berman, +1-206-623-7292 of Hagens Berman Sobol Shapiro, ; or Mark Firmani of Firmani + Associates Inc., +1-206-443-9357, Web site: http://www.hbsslaw.com/

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