Fed bars 2 former bank employees over PPP fraud, misappropriation of funds

Findings of loan fraud related to the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act and misappropriation of bank funds are the basis of two consent prohibition orders against former bank employees announced Thursday by the Federal Reserve Board.

Jamar Whitfield, in June and July 2020 while employed as a collections team leader at Regional Acceptance Corporation in Arlington, Texas, (a nonbank subsidiary of Truist Financial Corporation, Charlotte, N.C.) applied for and obtained a $20,833 Paycheck Protection Program (PPP) loan “based on materially false and fraudulent representations and used the funds for personal and other unauthorized expenses in violation of the terms of the loans and applicable laws and regulations,” according to a December consent order with the Fed. The order states that Whitfield’s conduct was contrary to the bank’s internal policies and “constituted violations of law or regulation, unsafe or unsound banking practices, or breaches of fiduciary duty.” It also said Whitfield has repaid about $7,300 of the PPP loan.

In a consent order issued this month, the Fed said that Pollyanna E. Redman, a former employee of Central Savings Bank, Sault Sainte Marie, Mich., from at least 2016 until her termination in May 2022 misappropriated a total of $145,815 in bank funds and used the funds for her personal benefit; and made false entries and modifications to bank records to conceal the activity. Redman “engaged in violations of law, engaged in unsafe and unsound practices, and breached her fiduciary duty to the Bank by misappropriating Bank funds and falsifying bank records,” the order states. It also said Redman has paid full restitution to the bank.

Both Whitfield and Redman are barred in the orders from any future involvement in the affairs of any federally insured financial institution.

Federal Reserve Board issues enforcement actions with former employee of Regional Acceptance Corporation and former employee of Central Savings Bank

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