Former MD bank employee barred, ordered to pay $1.25 million in restitution to bank, IRS

A former employee of CFG Community Bank, a state member bank in Baltimore, Md., is barred by the Federal Reserve Board from future service in any federally insured financial institution and must pay a total of $1.25 million in restitution to the bank and to the IRS related to diversion of bank funds and tax evasion, according to a Fed enforcement action announced Tuesday.

According to a Jan. 18 consent order, David Harris Lavine was previously charged in federal district court with conspiring with Charles Lee Tobias to commit tax evasion; three counts of tax evasion; two counts of theft by a bank officer; and four counts of bank fraud. The order says Lavine pleaded guilty Sept. 18 to one count of bank fraud and one count of tax evasion.

Lavine “stipulated facts” in his plea agreement, the order says, “demonstrating that he diverted from the Bank for his own benefit and that of Tobias: (a) funds from the refinance of mortgage loans owned by the Bank; (b) refunds of insurance premiums on loans owned by the Bank; (c) loan payoff proceeds owed to the Bank; and (d) engaged in tax evasion by failing to report the income  attributable to his conduct.”

The consent order says Lavine must pay restitution in the amount of $892,541.75 to the bank and $365,228.80 to the IRS.

Consent order

Federal Reserve Board issues enforcement action with former employee of CFG Community Bank