March FDIC orders include two civil money penalties totaling $90k

Civil money penalties (CMPs) against two bank-affiliated individuals, related to findings of unsafe or unsound practices and breaches of fiduciary duty, are among the 13 administrative (enforcement) actions taken in March and disclosed Friday by the Federal Deposit Insurance Corp. (FDIC).

One of the consent actions required Ronald C. Kelley, an institution-affiliated party of First Security Bank of Deer Lodge, Deer Lodge, Mont., to pay a $20,000 CMP related to the agency’s finding that Kelley misdirected two loan recoveries totaling $359,119 from the bank to his own benefit in June and November of 2015.

The other CMP, totaling $70,000, was assessed against William E. Brush, an institution-affiliated party of Dundee Bank, Omaha, Neb. (formerly Security State Bank, Ansley, Neb.). The consent order states that Brush, as a bank officer and director, made extensions of credit to a borrower “although he knew or should have known the borrower did not have the financial capacity to repay the credit, hereby exposing the Bank to significant risk of loss.”

The FDIC’s March orders also include five Section 19 orders, two orders of prohibition, two orders terminating consent orders, one order voluntarily terminating deposit insurance, and one modification of an order of prohibition.

FDIC Makes Public March Enforcement Actions; No Administrative Hearings Scheduled for May 2020

FDIC March Enforcement Decisions and Orders