Three bankers from an Iowa institution have earned consent cease and desist orders and civil money penalties (CMPs) for misappropriation of confidential bank records, the Federal Reserve said Thursday.
The agency said the former employees of Farmers and Merchants Savings Bank (FMB) of Manchester, Iowa, that consented to the actions were Randy Johnson, Chad Kellogg and Jeffrey Hines.
According to the consent orders, the trio separately resigned from the Iowa bank to join another institution not supervised by the Federal Reserve. In doing so, the orders allege, they misappropriated FMB confidential information to facilitate the transferring of FMB customers to the other financial institution.
All three were executives of FMB, holding the respective titles of executive vice president, senior vice president for commercial lending, and senior vice president for commercial banking. Each of the three were assessed a CMP of $50,000.
Also Thursday, the Federal Reserve said it had additionally issued a consent prohibition order against John Freeze, a former employee of Bank of Jackson Hole, Jackson, Wyoming. Freeze was prohibited after misappropriation of documents, including confidential supervisory information, the Fed said.