A bank was assessed an $11,000 civil money penalty over reported violations of federal flood insurance requirements under an order announced Thursday by the Federal Reserve Board. Meanwhile, a former California bank employee is named in a Fed prohibition order that also sets $18,700 in restitution.
The civil money penalty was assessed against Pioneer Bank of Mapleton, Minn. In an Oct. 5 consent order, the Fed said the bank had engaged in a “pattern or practice” of violations of Regulation H, the Fed rule that implements requirements of the National Flood Insurance Act.
In an order dated Sept. 29, the Fed said Mai Ly-Vu, a former employee of Pacific Premier Bank in Irvine, Calif., is prohibited from engaging in the affairs of any federally insured financial institution. The order, to be effective “at the expiration of thirty days after service is made,” also orders restitution of $18,700.
The Fed issued a notice of intent to pursue action against Ly-Vu, a former branch manager of the bank, in October 2019. In Thursday’s release, the Fed cited “improper involvement and personal financial interests in extensions of credit by the bank.”