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Former Arkansas CFO to repay $100K and leave industry

Little Rock, AR
11/21/2017
Fine Amount: 
$100,000 (restitution)
Penalty Type: 
Issued by: 

The OCC has issued a consent order of restitution and removal/prohibition to Tom Whitehead, former chief financial officer and director of One Bank and Trust, N.A., of Little Rock, Arkansas. The OCC found that, during Whitehead's tenure as CFO and director of the bank, he caused the Bank to pay expenses related to the purchase of a condominium for the personal benefit of the Bank’s chairman and chief executive officer (“CEO”). He also participated in the CEO’s misappropriation of $765,130 in sale proceeds of the Bank-owned condominium and the subsequent concealment of the transactions on the Bank’s records.

The OCC also found that Whitehead

  • caused the Bank to make residential mortgage loans to the CEO’s children based on false income and employment information
  • falsified mortgage documents in order to qualify the CEO’s children for mortgage loans
  • misapplied over $2.4 million in Bank funds for the benefit of the CEO and his children, and concealed the personal nature of the expenses on the Bank’s books and records
  • failed to disclose to the Board the nature and the amount of the CEO’s personal expenses that were being paid by the Bank
  • in June 2011, aided and abetted the CEO in misappropriating approximately $9.5 million withdrawn from the cash surrender value of the Bank-owned life insurance (“BOLI”) policies
  • failed to ensure that the Bank properly accounted for the life insurance transaction on its books thereby requiring the Bank required to write-down the cash surrender value of its BOLI by approximately $10.6 million as of September 30, 2012

Whitehead was ordered to make restitution of $100,000 to the bank, and agreed to an order of prohibition from participation in the banking industry.

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