In February 2012, NBRS Financial’s board asked the President and a board member to resign for
not disclosing their related interests in several loans. These two individuals allegedly borrowed
more than $3 million in the names of various relatives without disclosing their apparent interests
in the loan proceeds. Both the President and the board member allegedly misrepresented the
sources of repayment and the purpose of the loans, which may have been for personal gain.
Accordingly, NBRS Financial’s management filed the appropriate notification forms related to
these activities.