June money penalties included $30k for flood insurance violations, $35k for misappropriating funds, FDIC orders show

A $30,000 civil money penalty (CMP) assessment against a bank related to flood insurance violations and a $35,000 penalty against a former bank employee – who never responded or sought a hearing on the charges – were among the 15 enforcement actions taken by the federal bank deposit insurer in June, according to information released Friday.

In all, the Federal Deposit Insurance Corp. (FDIC) said that in June it ordered four CMP assessments, allowed one Section 19 application, and issued two orders terminating consent orders, four orders of termination of insurance, and six orders of prohibition from further participation in any federally insured depository institution.

The FDIC orders note the following CMPs:

  • A $35,000 penalty was assessed against Briget Boyd, former operations clerk at Premier Bank of the South, Cullman, Ala. The FDIC, in its decision and order, said it found that Boyd between May 11, 2015, and July 23, 2018, “knowingly and willfully made 151 unauthorized journal entries” that resulted in bank funds being transferred from the general ledger to accounts owned or controlled by Boyd or bank checks being issued that were “thereafter negotiated by Respondent.” Boyd’s actions caused a loss to the bank of at least $33,020.28, the FDIC said. Boyd, who did not respond or seek any hearing, was also barred from any future service in a federally insured depository institution.
  • A $30,000 penalty was assessed against Reliabank Dakota in Estelline, S.D., under a consent order citing a “pattern or practice” of violations of the National Flood Insurance Act.
  • A $5,000 penalty was assessed against Natalie L. Arnemann, formerly a managing director and senior vice president of the Ridgeland, Miss., branch of Renasant Bank (also in Tupelo). In a consent order, the FDIC said Arnemann from November 2018 to April 2019 “repeatedly wrote checks on accounts with insufficient funds (NSF checks) that she controlled at the Bank, approved without authorization many of these overdrafts, and wrote additional NSF checks to cover the prior overdrafts she had approved.” It said she approved a total of $198,705 in overdrafts without authorization.
  • A $1,000 penalty was assessed against LimeBank of Bolivar, Mo., also over a “pattern or practice” of violations of the flood insurance statute and implementing rules.

FDIC Makes Public June Enforcement Actions

June 2021 Enforcement Decisions and Orders