USAA FSB, accused currency manipulator among targets of OCC orders

A consent cease-and-desist order with USAA Federal Savings Bank (San Antonio, Texas), a civil money penalty against a former Oklahoma banker, and a prohibition order against a former banker indicted in a currency manipulation case are among the enforcement actions released late Friday by the Office of the Comptroller of the Currency (OCC).

In the case of USAA FSB, the OCC released a consent order finalized in early January over the bank’s deficiencies in compliance management, risk governance, and information technology (IT) management. Specific findings by the OCC included failure by the bank to implement and maintain an effective bank-wide risk management program commensurate with the bank’s size, complexity, and risk profile; failure to implement and maintain an effective, comprehensive IT program; failure to meet the standards of safety and soundness with respect to internal controls and information systems, its internal audit program, and IT program; and failure to implement and maintain an effective compliance management system that includes processes and practices designed to manage consumer compliance risk, support compliance with consumer protection-related laws and regulations, and prevent consumer harm. The bank was required to submit an action plan for remediation.

In other orders released Friday:

  • Akshay Aiyer, former executive director, foreign exchange trading at JPMorgan Chase Bank, N.A., Columbus, Ohio, is barred immediately from future involvement in the affairs of that bank or any depository institution. In a well-publicized currency manipulation case, Aiyer was indicted last May by a federal grand jury in the Southern District of New York for conspiracy to restrain trade in connection with foreign exchange trading. The OCC order says the indictment, the negative publicity surrounding it and other factors “threaten to impair public confidence in the integrity of the Bank.” The order is to remain in effect until final disposition of the criminal proceedings or until terminated by the comptroller.
  • William Olsen, former vice president and trust officer of BOKF, N.A., Tulsa, Okla., is barred from future involvement in the affairs of any federally insured financial institution and required to pay a $20,000 a civil money penalty (CMP). The consent order says Olsen distributed funds to the mother of the minor beneficiary of a trust account, knowing the mother was misdirecting funds for her personal use and without obtaining approval from a trust manager or the bank’s central administrative and investment review committee, among other things. Olsen’s misconduct “resulted in loss to the Bank; demonstrated personal dishonesty, willful or continuing disregard for the safety and soundness of the Bank, or involved a reckless disregard for the law or applicable regulations.”
  • Shirley Axtman, a former teller at First National Bank & Trust Co. of Williston, Williston, N.D., is barred from future service in any insured institution. OCC says Axtman, embezzled $40,000 between September 2014 and September 2016, taking cash from the bank’s ATM cassettes as she counted and filled the cassettes while alone in the bank’s vault. OCC says she paid full restitution.
  • Cheraye C. Parnell, a former phone banker with Wells Fargo Bank, N.A., Sioux Falls, S.D., is also prohibited. OCC says that from September to October 2015, Parnell misappropriated at least 21 customers’ account information and transferred the information to a third party who made unauthorized charges on those accounts. Her actions caused a loss to the bank of approximately $5,400, it says.

OCC Enforcement Actions and Terminations for February 2019