Skip to content

Bank president/cashier/director to pay $15,000

Oak Grove, MO
10/25/2018
Fine Amount: 
$15,000
Penalty Type: 
Issued by: 

The FDIC issued a Notice of Charges for an Order to Cease and Desist and Notice of Assessment and Order to Pay a penalty of $15,000 to Jeffrey S. Fortney, a former institution-affiliated party of Commercial Bank of Oak Grove, Oak Grove, MO, after determining that Fortney, as President, Cashier and a Director of the bank, engaged in unsafe or unsound practices and acts, omissions, or practices that constitute breaches of his fiduciary duty to the Bank ; that Fortney recklessly engaged in unsafe or unsound practices; and that the recklessly unsafe or unsound practices and breaches of fiduciary duty were part of a pattern of misconduct. Fortney had 20 days following service of the notices to request a hearing, or the orders would become effective.

The FDIC found that Fortney engaged in unsafe or unsound practices and breached his fiduciary duties to the Bank by failing to properly manage and reconcile the Bank's correspondent account, misstating the balance in the correspondent account and the Bank's· capital in the Bank's records, and providing altered documents to examiners in order to conceal the failures. The agency also found that Fortney

  • abruptly left the Bank premises on October 31, 2016 during an examination conducted by the Missouri Division of Finance (MDOF). He did not return, and he resigned at the Bank's request on November 21, 2016.
  • was solely responsible for managing, reviewing, and reconciling the Bank's correspondent account with UMB Bank, N.A. (UMB account).
  • altered UMB account statements in Respondent's office bearing various dates from December 20, 2011 through September 30, 2015.
  • caused the bank to charge off $469,434.04 on January 9, 2017 and an additional $47,628.42 on June 23, 2017.
  • provided an altered UMB account statement, dated March 31, 2014, and an altered verification letter from UMB, dated May 14, 2014, to State examiners during the June 2, 2014 MDOF examination, which showed that the Bank had $439,930.82 more on account at UMB than the actual balance.
  • provided an altered UMB account statement, dated September 30, 2015, to FDIC examiners during the November 9, 2015 examination, which showed that the Bank had $554,945.11 more on account at UMB than the actual balance.

    Penalties View All

    Banker Store View All

    From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

    Banker Store

    hot right now

    image description

    Looking for effective, convenient training on a particular subject?

    BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

    Search Penalties