Fed bars former KY bank president, orders $30,000 in restitution

A former president and board director of Whitaker Bank Inc., of Lexington, Ky., has been barred from participating in the affairs of any federally insured financial institution and ordered to pay $30,000 in restitution to the bank under a cease-and-desist and prohibition order executed May 1, according to information released Tuesday by the Federal Reserve Board.

The order says that Thomas P. Hinkebein, from at least 2016 to 2018, engaged in unsafe and unsound practices and breaches of fiduciary duty. The Fed order states that that Hinkebein, among other things, misappropriated bank assets in violation of bank policies; charged personal expenses to the bank’s credit card provided to him for business purposes; sought and obtained reimbursement from the bank for personal expenses; and made misrepresentations to the bank regarding personal expenses.

Hinkebein resigned from his position around August 2018, the order states, and consented to the prohibition order without denying or admitting to the allegations. The order requires payment of the $30,000 in restitution within 30 days from the date of the order, which was May 1.

The Fed also on Tuesday announced the termination in late April of enforcement actions executed in 2012 with Crown Bankshares Inc., of Edina, Minn., and in 2016 First Bankshares Inc., Barboursville, W.Va.

Federal Reserve Board issues enforcement action with former employee of Whitaker Bank, Inc. and announces termination of enforcement actions with Crown Bankshares, Inc. and First Bankshares, Inc.