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Former Mississippi teller banned and fined

Baldwyn, MS
01/30/2020
Fine Amount: 
$10,067 plus restitution and prohibition
Penalty Type: 
Issued by: 

The Federal Reserve Board has issued an Order of Prohibition, Restitution, and Civil Monetary Penalty against Carol Allen. a former teller and vault custodian for Farmers & Merchants Bank (FMB). Baldwyn, Mississippi, in connection with a Final Decision order due to Ms. Allen's default by failing to file a timely answer to a Notice of Charges.

According to the Final Decision Order (see link above)—

"Respondent admitted to FMB’s management that over the course of years she took $100 and $20 bills from the center of straps of cash stored in the vault and replaced them with $1 bills. She also removed cash from Federal Reserve bags and resealed them in order to make it appear as if they had not been opened. An auditor’s review comparing the Bank’s general ledger to the cash in the vault revealed a $247,976 shortfall. In addition, FMB determined that from February 2, 2006, to April 4, 2018, Respondent withdrew $193,345 (and subsequently repaid $94,300) from twenty-five customer CDs without authorization. To conceal her unauthorized withdrawals, Respondent sometimes altered customer CD statements and withheld account notices from customers. FMB returned to customers the missing net amount of $99,045, as well as $5,264.27 in lost interest. As a result of Respondent’s actions, FMB lost at least $352,285.09, of which only $332,020.82 was recouped from FMB’s insurance carrier and proceeds from the Employee Profit Sharing Plan that Respondent surrendered as partial restitution."

In addition to being banned from the banking industry, Allen was ordered to make restitution to the bank of $20,264,27, and to pay a $10,067 civil money penalty.

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