Former loan relationship officer at MA bank who received loan proceeds fined $50k

A batch of 11 enforcement orders by the federal bank deposit insurer in January includes two involving a former loan relationship officer whose actions reportedly led to a $3.3 million loss to his employer bank, according to information released Friday.

In those two orders, the Federal Deposit Insurance Corp. (FDIC) said it imposed a civil money penalty of $50,000 against Anthony J. Riccitelli, a former loan relationship officer with Blue Hills Bank, Boston, Mass., which has merged with Rockland Trust Company, Rockland, Mass., and barred Riccitelli from future involvement in the affairs of any federally insured financial institution.

The order states that Riccitelli proposed a $4.2 million loan package to a borrower but failed to disclose to the bank material information, including that he was personally a creditor of the borrower; and that the borrower’s total indebtedness shown in the loan application was inaccurate. It says Riccitelli “knew, or reasonably should have known, that his misconduct posed elevated risk of loss or harm to the Bank.”

Riccitelli, the order states, accepted $80,000 in loan proceeds, and the bank incurred a loss of $3.3 million as a result of funding the loans. It also says Riccitelli was charged with and subsequently pleaded guilty to violating 18 U.S.C. § 1005, “Participation in loan with intent to defraud financial institution.”

Among other actions, the FDIC issued a prohibition order against Brian Martin, a former bank loan officer at First Southern State Bank, Stevenson, Ala. The order states that between September 2015 and June 2017, Martin fraudulently originated 17 loans from eight loan customers under false pretenses and created fictitious collateral on the secured loans.

Another order shows the agency assessed a $4,000 fine against Mountain Valley Bank, Dunlap, Tenn., over violations of federal flood insurance requirements.

The remaining orders include two cease-and-desist consent orders, two section 19 orders, one order terminating a consent order, and two orders terminating consent orders and orders for restitution.

FDIC Makes Public January Enforcement Actions

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