Agency restores 11 to work at banks; one after 28-year break

Eleven approvals of “section 19” applications restoring an individual’s ability to work at a federally insured financial institution were among the 35 administrative enforcement actions the Federal Deposit Insurance Corp. (FDIC) issued in April, the agency said Friday.

Among those 11: an individual who was barred 28 years ago for possession of marijuana.

According to the April list of orders of administrative enforcement actions taken against banks and individuals, Nader Nizar Chahine in September 1989 was convicted of possession of marijuana for sale in violation of the California Health and Safety Code. “In connection with the same incident,” the report notes, “Applicant was convicted on an unknown date on or around September 8, 1989 of providing false statements to the Department of Motor Vehicles or the California Highway Patrol” in violation of state law.

The agency said that, in the 28 years since the offenses, Chahine has had no further convictions or program entries subject to Section 19 and that it found Chahine “has demonstrated satisfactory evidence of rehabilitation” and that “Applicant’s participation directly or indirectly in the conduct of the affairs of any insured depository institution, in any position, would not pose a threat to the safety or soundness of any insured depository institution or the interests of depositors.”

Among the 10 other section 19 applications addressed included individuals who were prohibited for:

  • Failure to return a rental car (18 years ago);
  • Passing a bad check for $300 and theft of $500 (26 years ago);
  • Negotiating a worthless negotiable instrument (9 years ago).

Those three, and the other seven individuals, were given the green light work in federally insured financial institutions.

Among the other 24 enforcement actions reported by the agency for April were: two consent orders; one amended consent order; four civil money penalties; 12 removal and prohibition orders; four terminations of consent orders; and one termination of a prompt corrective action directive.

FDIC Makes Public April Enforcement Actions