The Federal Deposit Insurance Corp sued ex-Chief Executive of IndyMac Michael Perry to recover over $600 million in damages and costs in the case of risky loans made by the lender.

According to the court documents, Perry “negligently” allowed the issue of more than $10 billion in "risky," residential loans intended for sale to a secondary market in 2007.

The lawsuit was filed in the district court of California.

The lending caused IndyMac, a large California mortgage lender that failed in July 2008, and its receiver to incur damages of over $600 million, court documents showed