A former branch manager and vice president of Pacific Premier Bank (Irvine, Calif.) would be barred from ever working again in a federally insured financial institution and required to pay restitution of $18,700 under an order sought by the Federal Reserve Board, the Fed said in a notice released Thursday.
The Fed, in the Oct. 7 notice, said that Mai N. Ly-Vu “engaged in unsafe or unsound practices and breaches of fiduciary duty” by failing to disclose and making false or misleading statements to the bank regarding her personal financial interests in $250,000 worth of credit extensions to companies owned by her family members, one for which Ly-Vu was identified as an executive officer.
The Fed said that through this activity, Ly-Vu received a financial gain and was unjustly enriched in the amount of at least $18,700. The bank also suffered a financial loss of at least $56,930 “or other damage and reputational harm.”
The Fed notice says that Ly-Vu, who concealed her connections to the borrowers, also received at least $18,700 in payments from one company for which she had been listed as the chief financial officer. The notice states that Ly-Vu violated her bank’s code of conduct, which, among other things, prohibited conflicts of interest, required disclosure of any conflicts or appearance of conflicts, and required specific board consideration “whenever a potential conflict of interest is present in any proposed loan or other transaction or relationship the [Bank] may enter into[.]”
Ly-Vu was hired by the Pacific Premier Bank about Dec. 18, 2014, as a vice president and branch manager of its Tustin, Calif., branch in connection with the bank’s acquisition of Independence Bank, her former employer.
Federal Reserve Board announces it is seeking to permanently bar former branch manager and vice president of Pacific Premier Bank from employment in banking industry