FDIC Prohibits Three Banking Activities

Three people have been ordered to stop participating “in any way” with financial institutions following January’s enforcement actions by the Federal Deposit Insurance Corporation (FDIC), the agency announced on Friday (February 25th).

There were nine enforcement actions against banks or individuals in total, four of which imposed fines ranging from $3,000 to just over $16,000 for having inadequate flood insurance. Another order informed Pilot Bank in Tampa, Fla., that it had until May 31 to notify all customers that effective June 30, it would no longer be an FDIC-insured member bank.

See also: Consumer advocates may find a friend in the FDIC to fight ‘Rent-a-Bank’ loans

Thomas King Robb Jr., Tiffany Culliver Franklin and Justin Rader have separately received enforcement orders from the FDIC that prevent them from “participating in any way in the conduct of the affairs of any financial institution or organization.” and to “solicit, procure, transfer, attempt to transfer, vote or attempt to vote a power of attorney, consent or authorization with respect to any voting rights in a financial institution.”

The manner in which they were barred from the bank was different for each of them, but in each case the fundamental offense was a “breach of law, dangerous or unsound, breach of fiduciary duty, resulting in a loss to the Bank and a gain to the Respondent, involved personal dishonesty and displayed a continued disregard for the safety and soundness of the Bank.

Read more: Former FDIC CIO strongly criticizes agency’s focus on innovation

In the case of Thomas King Robb Jr., the 37-year-old Mississippi man was charged with embezzlement by a bank officer for allegedly using his position as a loan officer at Bankplus to approve fraudulent loans to him -even, some of which benefited his business. , King Transportation Services, LLC, according to a statement from the Department of Justice. No dollar amounts were given. He was sentenced to six months in prison.

Tiffany Culliver Franklin is accused of embezzling an undisclosed sum of money while working as a branch banker / safe deposit box cashier at Branch Banking and Trust Company, now known as Truist Bank, in Charlotte, in North Carolina, according to FDIC filing. The crime allegedly took place between February 2017 and July 2017.

Justin Rader is accused of making a dozen unauthorized withdrawals from client accounts totaling approximately $73,101 while serving as branch manager of Parke Bank in Collingswood, New Jersey, according to the filing. The crime allegedly took place from January 2018 until his dismissal on October 13, 2020.

——————————

NEW PYMNTS DATA: ACCOUNT OPENING AND LOAN SERVICE IN THE DIGITAL ENVIRONMENT

On: Forty-two percent of US consumers are more likely to open accounts with financial institutions that facilitate automatic sharing of their bank details upon sign-up. The PYMNTS study Account opening and loan management in the digital environmentsurveyed 2,300 consumers to explore how FIs can leverage open banking to engage customers and create a better account opening experience.

Comments are closed.