OCC enforcement actions include $54k in combined penalty, restitution against former bank loan officer

A cease-and-desist order, a prohibition and some $54,000 in money penalties and restitution against a former loan officer of First Southern National Bank (Lancaster, Ky.) are among the enforcement actions executed in June by the Office of the Comptroller of the Currency (OCC).

The OCC assessed a $27,500 civil money penalty (CMP) against McKinley B. Dailey, required Dailey to pay $26,385.97 to the bank, and barred Daily from future service in any federally insured financial institution, the June orders show.

In its orders, the OCC said Dailey, while a loan officer at the bank, from January 2014 to July 2017 obtained bank loans (“side loans”) in his name and the name of an associate at the bank and transferred the proceeds to “Customer-1” and “Customer-2” with the understanding that each recipient would repay Daily for the loans. In two instances, the agency said, Daily also caused the bank to make subsequent loans to Customer-1, with a portion of the proceeds totaling $26,385.97 being used to repay Dailey’s side loans. The bank lost at least $26,385.97, it said.

Other OCC enforcement actions listed for June included a formal agreement with The First National Bank of Tahoka (Tahoka, Texas); a prompt corrective action (PCA) directive with City National Bank of New Jersey (Newark, N.J.), termination of a 2016 cease-and-desist order with First National Bank of Omaha (Omaha, Neb.), and termination of a 2018 PCA directive with City National Bank of New Jersey (Newark, N.J.).

OCC Enforcement Actions and Terminations