2 former bank employees barred; federal savings association fined $193k for flood insurance violations

Five January enforcement actions released Thursday by the Office of the Comptroller included two prohibitions from future service in any insured financial institution and the assessment of a $193,105.50 civil money penalty against a bank over violations of federal flood insurance requirements.

The civil money penalty was assessed against The Federal Savings Bank, Chicago, Ill., which the OCC cited for a pattern or practice of violation of the Flood Disaster Protection Act and its implementing regulations.

In the prohibition orders, the OCC found that:

  • Jaime Cowles, former banking center manager for Webster Bank, N.A. Waterbury, Conn., between December 2016 and October 2017 withdrew more than $70,000 from a bank customer’s accounts for her personal benefit, without the customer’s knowledge or authorization;
  • Sarah L. Luther, former store manager for Wells Fargo Bank, N.A. Sioux Falls, S.D., from February to May 2016 misappropriated bank customers’ confidential information and sold it to a third party. Luther received at least $8,000 for this information and the bank suffered a loss in excess of $300,000.

OCC Enforcement Actions and Terminations

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