OCC releases enforcement actions

The OCC has released recent enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. Included in the list of actions were:

• a $5,000 personal civil money penalty assessed against the former CEO and board chairman of a Florida bank whom the OCC found to have participated in the bank's issuance of $1.5 million in loans to each of three individuals with insufficient cash flow or liquidity to repay them, and the release of collateral and guarantees for the loans without bank loan committee approval. The three individuals later defaulted, and the bank suffered a $4.34 million loss by the time the bank failed. Subsequent recoveries reduced the loss to $746,000.
• a consent cease and desist order against U.S. Bank National Association, Cincinnati, Ohio, relating to identified deficiencies in the bank's overall program for BSA/AML compliance.
• a personal consent cease and desist order against a former director, EVP and loan officer of a national bank in New Mexico, for receiving funds from a bank customer while serving as the bank's loan officer for the customer, and failing to disclose the receipt of those funds to the directors of the bank, thereby engaging in unsafe and unsound practices.