Two former bank employees – one charged with embezzlement at a Massachusetts bank, another charged with misappropriating at least $562,000 from a Tennessee institution – have been prohibited from future involvement in financial institutions, the Federal Reserve said Tuesday.
In a release, the Fed said it had reached consent orders of prohibition against:
- Vasken Papazian, a former employee of East Cambridge Savings Bank, Cambridge, Mass., for embezzling money from a bank customer.
- Connie Clabo, a former employee of SmartBank, Pigeon Forge, Tenn., for misappropriating funds from the bank through false statements and accounting entries.
According to the consent order published by the Fed, Papazian – while employed as a branch manager at the bank between Dec. 19, 2016, and March 30, 2017 – withdrew money from a customer’s account without the customer’s permission on six occasions, totaling $38,800.
The Fed consent order published for Clabo stated that while she was employed at the bank as an assistant vice president and vice president between April 30, 2014, and March 5, 2018, she “misappropriated bank funds to pay-off personal and family members’ loans owed to the Bank, obtained Bank checks for personal use through false representations, and made repeated false entries in the Bank’s records to hide her actions.” The Fed said, in the order, that Clabo caused a loss to the bank and misappropriated at least $562,544 from SmartBank “through false statements and accounting entries.”
Both Papazien and Clabo are prohibited from participating in any manner in the conduct of the affairs of any federally insured financial institution without the prior written approval of the Federal Reserve or, where necessary, another federal financial institution regulator.
Federal Reserve Board issues enforcement actions with former employee of East Cambridge Savings Bank and former employee of SmartBank