Restitution of more than $860,000 is being sought by the federal bank deposit insurance agency against a former director at a Texas bank who engaged in a complicated scheme involving multiple accounts held by the director, the agency said Friday.
The Federal Deposit Insurance Corp. (FDIC), in a notice of prohibition and for restitution, said it was seeking restitution of $867,529 from Amar Ali, a former director at Spectra Bank, Fort Worth, Texas. The FDIC said Ali was also an institution-affiliated party (IAP) of the bank. The agency is, in addition, seeking to prohibit Ali from further engagement at a federally insured financial institution.
The FDIC listed the action against Ali in its notice of enforcement actions taken in May, which it published Friday.
The FDIC alleges that Ali “directly or indirectly, engaged in or participated in unsafe or unsound practices in connection with the Bank, and breached fiduciary duties owed to the Bank between 2018 and 2019.”
The agency said Ali’s practices and breaches “caused the Bank to suffer financial loss, and Respondent received financial gain. Respondent’s practices and breaches involved personal dishonesty and demonstrated his willful and continuing disregard for the safety or soundness of the Bank.”
More specifically, the FDIC charged that Ali caused the bank to extend credit to an entity he owned based on misrepresentations regarding his income as the guarantor. He also caused the bank to “extend immediate credit to himself and his related entities in the form of cashier’s checks drawn on the Bank and premised on uncollected funds.”
In two cases, because of Ali’s actions, the FDIC alleged, the bank was forced to charge off loans resulting in losses of $295,952 and $571,577 – the sum of which is the restitution the agency is seeking from the former director.
FDIC Enforcement Decisions and Orders
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