Nine directors of a failed New Orleans bank were either prohibited from ever serving again at a federally insured financial institution, assessed a civil money penalty (CMP) – or both, in one case – in enforcement actions taken by the federal bank deposit insurance agency in April, the agency said Friday.
The directors were all associated with First NBC Bank of New Orleans, a $4.7 billion bank that failed in April 2017. The bank failed in the wake of a fraud scandal in which executives at the bank were charged, and convicted, of disguising the true financial status of certain borrowers and their troubled loans, concealing the true financial condition of the bank from the board, auditors, and examiners.
For example, the bank’s former chief executive, Ashton J. Ryan, Jr., was convicted in February of 46 counts of bank fraud, making false entries in bank records and conspiracy that contributed to the bank’s demise.
In April’s actions, the FDIC either prohibited directors or fined them for not responding adequately “to concerns expressed by the FDIC as one of the bank’s regulators.” The concerns were related to indications of fraud at the bank.
In Friday’s announcement, the FDIC said its enforcement actions included prohibitions against directors Grish Roy Pandit, Richard M. Wilkinson, James C. Roddy, Herbert W. Anderson, Jr., Stephen P. Petagna and Hermann Moyse, III.
Meanwhile, directors Leon L. Giorgio, Jr., and John F. French were assessed $7,500 CMPs. Finally, director Dale N. Atkins was fined $5,000 and also prohibited from further service at a bank.
In other action in April, the FDIC said it assessed a $5,000 – and imposed a prohibition – against a branch president of a Montana bank.
The FDIC said Douglas J. Kallenberger, an executive of Stockman Bank of Montana Miles City, Mont., made unauthorized advances on the loan accounts of a bank customer and used the proceeds for personal purposes. His actions, the FDIC said, were part of a pattern of misconduct which caused the Stockman Bank to suffer more than a minimal financial loss or other damage, with Kallenberger receiving financial gain or other benefit.