Michael Perry, the former chief executive officer of IndyMac, has been hit with a $600 million lawsuit by the Federal Deposit Insurance Corporation (FDIC) citing damages related to the sale of toxic mortgages. The FDIC contends in their complaint that Perry acted negligently in 2007 when he allowed IndyMac to generate and purchase approximately $10 billion in loans for sale in the secondary market when Perry had knowledge of the instability of the secondary mortgage marketplace. 

When IndyMac was unable to sell the loans on the secondary market, it created more than $600 million in losses, says the FDIC. 

The case, FDIC v. Perry, U.S. District Court, Central District of California, No. CV11-5561, was filed in federal court in Los Angeles.