A former Kentucky banker has been prohibited from future service in a federally insured financial institution following approval of an insider loan and unauthorized access of information of at least two of her bank’s customers, the Federal Reserve said Thursday.
The Fed said Carolyn E. Flynn, a former chief executive officer, chairman and institution-affiliated party of Community Financial Services Bank of Benton, Ky., signed a consent order prohibiting her from service at a federally insured financial institution. According to the Fed, Flynn approved a $90,517 loan to a family member and accessed the bank’ s customer information of at least two customers without authorization. The loan approval and the accessing of the customer information, the Fed said, were contrary to the bank’s written policies and constituted unsafe or unsound banking practices.
The Fed said that although the loan was repaid in full, the bank suffered a financial loss of approximately $1,000 in legal fees resulting from Flynn’s conduct – which she repaid in restitution. Flynn has since retired, the Fed said.