February enforcements by FDIC include $7,500 civil money penalty, one prohibition

The nine enforcement orders issued in February by the federal bank deposit insurer included one $7,500 civil money penalty assessment related to improper reimbursements and one prohibition of a former bank manager who falsified reports to hide missing funds from her teller drawer, according to information released Friday.

In a Feb. 1 consent order, the Federal Deposit Insurance Corp. (FDIC) said that Cody A. Jarrott, who served between at least 2015 and 2018 as a director and audit committee chairman for Citizens State Bank of Woodville, Texas, failed to perform due diligence on expenses submitted by the bank’s president; and improperly authorized reimbursements for expenses that were barred in express terms by the bank’s expense policies “and were for the personal benefit of the Bank’s president and his family members.”

In a Feb. 26 consent order, the agency said that Patricia A. Price, while serving as branch manager between August 2016 and 2017 at The Bank of Southside Virginia, Carson, Va., falsified bank records to conceal missing funds from her teller drawer, causing a $225,150 loss to the bank. It said Price also failed to maintain proper cash balances at the bank’s branch. Price is barred under the order from any future involvement in the affairs of any federally insured depository institution.

The remaining seven FDIC enforcement orders from February include three Section 19 orders, one modification of a prohibition order, two orders terminating consent orders, and one order terminating deposit insurance.

FDIC Makes Public February Enforcement Actions

February 2021 Enforcement Decisions and Orders

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