A consent order barring the former president of the failed Enloe State Bank from future service in any federally insured financial institution was issued in September by the Federal Deposit Insurance Corp. (FDIC), according to information released Friday.
The order named Anita Moody, who in June admitted to charges of arson and conspiracy to commit bank fraud. A release by a U.S. attorney’s office June 5 said Moody received a jail sentence and order to pay $11.1 million in restitution. The FDIC’s September order cites Moody for, among other things, for violations, unsafe or unsound banking practices, and breaches of fiduciary duty during her service at the bank and that her actions demonstrated her “unfitness” to serve.
Other enforcement actions disclosed Friday included two additional prohibitions, two civil money penalties, four Section 19 waivers, one termination of cease-and-desist order, and one order for voluntary termination of federal deposit insurance.
The civil money penalties were assessed against two Wisconsin banks that the agency found engaged in “a pattern or practice” of violating federal flood insurance statutes and FDIC rules:
- Wisconsin River Bank, Sauk City, Wis., was assessed an $18,500 civil money penalty related to the failure to obtain adequate flood insurance coverage at origination for 25 loans; and failing to provide borrowers a notice of special flood hazards and availability of federal disaster relief assistance.
- Fortifi Bank, Berlin, Wis., was assessed a penalty of $15,375 for allowing flood insurance to lapse in one instance an failing to obtain coverage in four instances; failing to escrow funds for insurance premiums in nine instances; and failing to provide written notice of flood insurance at renewal in 13 instances.
RR: Former bank president admits arson in attempt to cover up phony loans, which led to first bank failure of 2019 (June 8, 2020)