Three prohibited from banking for misuse of funds; bank faces flood insurance violation fine

Three bankers consented to prohibitions from further participation in the affairs of any federally insured financial institution or agency, and a Montana bank faces a fine for flood insurance compliance violations, according to the latest round of enforcement actions from the federal insurer of bank deposits released Friday.

In the first of the prohibitions issued for January, the Federal Deposit Insurance Corp. (FDIC) said David W. Mann, while serving as chief executive and board chairman of Citizens State Bank in Woodville, Texas, intentionally sought and obtained reimbursement from the bank for numerous expenses that were for the personal benefit of himself or his family members and which “provided little to no benefit to his bank.”

The agency also alleged that Mann misrepresented the nature and purpose of certain expenses that he submitted for reimbursement, “thereby concealing that such expenses were for his personal use.” In other instances, the agency asserted, Mann violated the Citizen’s State expense reimbursement policy by obtaining reimbursement for various expenses without providing proper documentation. The agency provided no additional details, including dollar amounts.

In the other two prohibitions, the FDIC alleged:

  • Diana Perez, while employed as a teller for FNBC Bank & Trust of La Grange, Ill., misappropriated approximately $138,173 from a bank customer’s deposits for personal gain or other benefit without reimbursing the customer or the bank.
  • Donald E. Eaves, acting as banking center manager at the Yosemite Bank (a division of Premier Valley Bank in Fresno, Calif.) took funds payable to the bank and converted them for his personal benefit. No dollar amounts were provided.

In other action, the FDIC said that Glacier Bank of Kalispell, Mont., was assessed a civil money penalty (CMP) of $16,750 for violations of flood insurance requirements. The bank has consented to pay the fine.

FDIC Makes Public January Enforcement Actions

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