DENVER (AP) – Colorado officials are accusing the former head of the defunct Bank of Choice in Greeley of violating securities laws.

Colorado Securities Commissioner Fred Joseph said Thursday he has filed civil charges against the bank’s former CEO Darrell McAllister.

State officials closed the bank in 2011 due to insolvency, leaving the bank’s stock worthless.

The complaint alleges that in 2008, McAllister had offered unregistered preferred stock in the bank and its holding company. It alleges he then told employees to encourage customers to swap fully insured certificates of deposit for the stock, without ensuring customers fully knew the risks.

McAllister tells The Denver Post it’s not that simple. He says there’s been a lot of effort trying to settle the dispute. His lawyer says McAllister’s defense will be vigorous.

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