OCC issues enforcement actions, including 1 civil money penalty ($100,000)

Five new enforcement actions and terminations of four previous actions were announced Friday by the Office of the Comptroller of the Currency. The new actions included one new cease-and-desist, one civil money penalty coupled with a prohibition order, and two other prohibitions.

Two of the actions pertain to Resolute Bank (formerly the Bank of Maumee) of Maumee, Ohio. A new consent order, dated Sept. 5, replaces a previous order set in 2012. The new order  “is intended to be, and shall be construed to be, a final order …,” according to the document. The order addresses bank governance and operations as well as violations of law uncovered during examination.

Individuals barred from future involvement in the affairs of federally insured financial institutions are:

  • Dirceu P. Magalhaes, former private banking senior manager of the Royal Bank of Canada, Miami, Fla., Federal Branch (now closed). Besides being prohibited from future financial institution work, Magalhaes is assessed a $100,000 civil money penalty. The order says that from January to November 2013, Magalhaes facilitated international money transfers between Brazil and the United States for high-risk clients and others residing in a high-risk jurisdiction, withheld information from his bank about them and made about $15,000 through the activity. “Respondent engaged in violations of law and regulation (including 31 USC 5318(g) and 12 CFR 21.11), recklessly engaged in unsafe or unsound practices, and breached his fiduciary duty to the Branch …,” the order states.
  • Lindsay Elizabeth Schneck, a former customer service representative at Fulton Bank, National Association, of Lancaster, Pa. OCC says Schneck withdrew $7,015.53 from the accounts of an elderly bank customer without authorization between June and October 2016.
  • Austen C. Middick, a former teller at Wells Fargo Bank, National Association, Sioux Falls, S.D. Middick, the agency says, in 2014 unlawfully misappropriated approximately $22,000 from the bank and a bank customer.

The OCC also announced terminations of previous enforcement actions with American Investors Bank and Mortgage, Eden Prairie, Minn., Arab Bank PLC, New York, N.Y., and The Northumberland National Bank, Northumberland, Pa.

OCC Enforcement Actions and Terminations for October 2018