OCC to press for prohibition, $150k penalty against former RI banker Tuesday

A former vice president and home mortgage area manager at Citizens Bank, N.A., Providence, R.I., who allegedly sought and received kickbacks from a loan officer under his supervision is the respondent in a case set to be taken up before an administrative law judge Tuesday by the Office of the Comptroller of the Currency.

The OCC, in its notice of charges in May, said that Biagio Maffettone solicited and received cash payments, not authorized by the bank, from a subordinate loan officer in exchange for access to certain mortgage referral sources. It said he did not disclose this unauthorized activity and attempted to hide it from the bank.

Stating that Maffettone engaged in violations of law, unsafe or unsound banking practices, and breaches of fiduciary duties in his role at the bank, the OCC said it is seeking an order to prohibit Maffettone from further participation in the conduct of the affairs of any insured depository institution and the assessment of a $150,000 civil money penalty.

It said Tuesday’s hearing will begin 8:30 a.m. in the U.S. Bankruptcy Court for the District of Rhode Island, 380 Westminster St, Providence, RI 02903. The OCC said the hearing is open to the public as required by federal law.

OCC to Hold Hearing on Charges Against Biagio Maffettone; Agency Seeks Prohibition Order and Civil Money Penalty