FDIC assesses $25k CMP over misappropriation of funds; former official barred for ID theft

A handful of civil money penalty orders and prohibitions are included among the 14 enforcement orders issued in May and released Friday by the Federal Deposit Insurance Corp. (FDIC).

In one consent order, the FDIC barred Jason McMillan, who when employed as a senior vice president and commercial loan officer at Truist Bank in Charlotte, N.C., allegedly used his position to steal the identity of a legitimate bank customer. It said McMillan then obtained four loans in the customer’s name, and also in the name of a fictitious entity, which McMillan tied to the customer in the bank’s records without the customer’s knowledge or consent.

Another consent order prohibited Susan M. Chapman, an institution-affiliated party of Fort Gibson State Bank, Fort Gibson, Okla., as well as ordered payment of a $25,000 civil money penalty. The FDIC order states that Chapman from 2017 through June 2018, as a vice president and loan officer at the bank, made unauthorized loan advances and misapplied loan proceeds and checks received by the bank. It states that proceeds from the advances would be credited to other borrowers’ loans that were past due, deposited into another customer’s account, or a cashier’s check would be issued to an unrelated borrower. “There is no evidence of personal gain to Respondent,” the order states.

The May orders also included, among other things, three CMPs ranging from $2,000 to $8,250 related to violations of the Flood Disaster Protection Act (FDPA).

FDIC Makes Public May Enforcement Actions

May 2022 Enforcement Decisions and Orders