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Wisconsin bank director fined for unsafe, unsound practices

Waupaca, WI
06/21/2017
Fine Amount: 
$5,000
Issued by: 

The OCC has issued a Consent Order for the payment of a $5,000 civil money penalty to Sylvia C. Thoe, now or formerly a director of First National Bank, Waupaca, Wisconsin.

Thoe was employed by the bank from 1978 to 2010, when she retired as the bank's Senior Vice President and Cashier. She became a director of the bank in 2005, and served as a member of the board's Executive Compensation Committee from at least 2010 to 2013.

The OCC found that Thoe --

  • from at least 2012 to 2013, "failed to oversee or control the use of Bank funds by its former President, Chief Executive Officer (“CEO”), and Chairman of the Bank’s Board (“Chairman”) for his personal expenses despite knowing that he had previously used Bank funds for personal expenses."
  • during the same period, "failed to ensure that disinterested and independent directors determined and approved the compensation of the Bank’s former President, CEO, and Chairman, and allowed him to receive excessive compensation."
  • during the same period, "failed to recuse herself from voting on the Bank’s former President, CEO, and Chairman’s compensation even though she had a conflict of interest because he was personally indebted to Respondent and her husband in an amount exceeding $2 million."
  • "[b]y reason of the foregoing conduct, ... engaged in reckless unsafe or unsound practices, or breached her fiduciary duty to the Bank; which practices, or breaches were part of a pattern of misconduct, and caused or were likely to cause more than a minimal loss to the Bank.

Related story: Former WI bank director to pay $1.7 million

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