Bank president pays $15K penalty
Wayne Hoffner, now or formerly the president and loan officer of The Union Bank, Beulah, North Dakota, was issued a Consent Order and Order to Pay a civil penalty of $15,000 by the FDIC, after the agency determined that, as the president and a loan officer of the bank, he
- engaged or participated in unsafe or unsound practices and breaches of fiduciary duty as an institution-affiliated party of the bank;
- failed to disclose information regarding the purpose of certain loans to the Bank's Board of Directors and to regulators during the September 2016 examination after becoming aware that certain loan proceeds were not used for their intended purposes; and
- in May of 2015, released collateral for a loan without receiving the proceeds of that collateral, which caused the loan to be undersecured.