Updated from 11:23 a.m. EDT

Federal prosecutors probing municipal corruption in Philadelphia might not be finished looking into potential wrongdoing at Commerce Bancorp ( CBH).

Prosecutors, in a court filing, say the fast-growing New Jersey bank "remains a subject of ongoing criminal and civil investigations." The filing could contradict a recent claim by Commerce Bank officials that the Cherry Hill-based company is no longer the focus of a criminal inquiry.

The news that the investigation may not be over, which was first reported by The Philadelphia Inquirer, sent investors scurrying again. In midday trading, shares of Commerce were down $1.50, or 2.9%, to $50.79, their lowest price in nearly eight months.

Prosecutors disclosed their continuing interest in a request to hold a hearing to determine whether the bank is paying the legal fees of two Commerce officials who have been charged in the scandal. Federal authorities contend that there may be a conflict of interest in Commerce paying the bankers legal expenses, if it deters "these defendants' potential cooperation with the government."

Speaking at bank conference call two weeks ago, Michael Critchley, the high-powered criminal defense lawyer representing Commerce, said: "The bank has not been charged with any wrongdoing, nor will it be charged with any wrongdoing." The West Orange, N.J., lawyer, who also is a director of one of Commerce's regional banking subsidiaries, described the investigation by federal prosecutors as having been "terminated."

The strong statements by Critchley helped stop the bleeding in Commerce shares, which lost roughly 18% after two executives of the bank's Pennsylvania subsidiary were indicted in late June for their alleged role in a Philadelphia influence-peddling scheme. Prosecutors have charged Glenn Holck, president of Commerce Bank/Pennsylvania, and Stephen Umbrell, a vice president of the subsidiary, with being part of a criminal conspiracy to arrange special loans for a former Philadelphia official, who in turn awarded lucrative bond underwriting and other banking deals to Commerce.

The Commerce bankers were indicted along with 10 other people, including former Philadelphia Treasurer Corey Kemp, local attorney Ronald White and former bankers with J.P. Morgan Chase ( JPM) and Janney Montgomery Scott. White, the alleged lynchpin of the influence-peddling scheme, was a director of Commerce's Pennsylvania banking subsidiary and received $182,000 in consulting fees from the bank, according to prosecutors.

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