Two banned from financial institutions for unauthorized withdrawals, phony loan docs

Two orders of prohibition were among the enforcement actions taken by the federal insurer of bank deposits in January, the agency said Friday, against former bank employees, the first for unauthorized withdrawals from customers’ accounts and the other for approving loans proceeds to benefit himself contrary to the stated loan purposes.

The Federal Deposit Insurance Corp. (FDIC) alleged that Justin Rader, formerly a branch manager party at Parke Bank, Sewell, N.J., made 11 unauthorized withdrawals from customers’ accounts and one electronic transfer out of a customer’s account. The agency said that, as a result, the bank lost approximately $73,101 and Rader received a financial gain in the same amount.

In the other case, the agency alleged that Thomas King Robb, Jr., formerly an assistant vice president, branch manager and commercial loan officer for BankPlus of Belzoni, Miss., approved and presented for approval five loans through which he used the proceeds to benefit himself, contrary to the stated loan purposes.

According to the FDIC, Robb originated four of the loans without the borrowers’ knowledge and directed portions of the loan proceeds to his company, King Transportation Services, LLC. The supporting loan documents, the agency alleged, contained false and misleading information.

The FDIC said Robb’s actions “were a violation of law, unsafe or unsound, breaches of his fiduciary duties, resulted in loss to the Bank and gain to Respondent, involved personal dishonesty, and demonstrated a continuing disregard for the safety and soundness of the Bank.”

Both Rader and Robb have been prohibited from participating in any manner in the conduct of the affairs of any financial institution or organization.

January 2022 Enforcement Decisions and Orders