Flood insurance violations net $155,700 in penalties for two banks in May, June

Civil money penalties (CMPs) totaling $155,700 were assessed against two banks in late May and June over their “pattern or practice” of violating the Flood Disaster Protection Act (FDPA), the National Flood Insurance Act (NFIA) and implementing rules, according to orders released Friday by the Federal Deposit Insurance Corp. (FDIC.)

The agency assessed a $136,100 penalty in May against Bank of Louisiana (New Orleans, La.), under an adjudicated CMP order that points to findings dating back as far as 2012. Under a June consent order, Badger Bank (Fort Atkinson, Wis.) was required to pay a penalty of $19,600.

In all, the FDIC issued a total of 14 orders for June, including two stipulated orders of removal and prohibition. Those two orders show that the agency determined that:

  • Angela L. Flippin, while employed as vice president and chief operating officer of Peoples Bank of Moniteau County (Jamestown, Mo.) in 2014 to 2017, took bank funds for her and her family’s personal use, including for payment of her personal expenses, and falsified bank records to conceal her misconduct.
  • Darren M. Gosling, as executive vice president, chief lending officer, and regional president of FortuneBank (Arnold, Mo.), engaged in a scheme to conceal losses on loans by knowingly making new loans to uncreditworthy borrowers, making loans to nominee borrowers, inflating the value of collateral used to support new loans, misapplying the proceeds of new loans to keep existing loans at the bank current, and falsifying bank records.

Both Flippin and Gosling are barred from future participation in the affairs of any federally insured financial institution.

The remaining orders from June include three terminations of previous consent orders; five Section 19 orders (lifting previous prohibitions against individuals); and two voluntary terminations of federal deposit insurance.

FDIC Makes Public June Enforcement Actions; No Administrative Hearings Scheduled for August 2019

Be the first to comment

Leave a Reply

Your email address will not be published.