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Fed issues prohibition letters
The Federal Reserve Board issued 13 "Section 19" letters during the second quarter of 2019. The letters notified individuals they are legally prohibited under Section 19 of the Federal Deposit Insurance Act and Section 205 of the National Credit Union Act from becoming or continuing as an institution-affiliated party with respect to any federally-insured financial organization (and certain other organizations) without permission, and that violation of the prohibition can result in daily criminal fines of up to $1 million or up to five years imprisonment.
The letters were issued to former institution-affiliated parties of:
- East West Bank, Pasadena, CA (conviction for conspiracy to launder money instruments and making false entries in bank records)
- Bank of New York Mellon (pleaded guilty to one count of wire fraud)
- Copiah Bancshares (pleaded guilty to "aiding and abetting the attempt to evade or defeat tax")
- Regions Bank (pleaded guilty to a charge of theft)
- Regions Bank (pleaded guilty to a charge of grand theft)
- Regions Bank (pleaded guilty to a charge of embezzlement)
- Compass Bank, Mansfield, TX (entry into pretrial diversion program to resolve indictment for property theft)
- Clear Mountain Bank (pleaded guilty to bank fraud)
- Regions Bank (entry into pretrial diversion program to resolve indictment for exploitation of the elderly involving $50,000 or more)
- First Citizens Community Bank (pleaded guilty to theft by unlawful taking or disposition)
- Fifth Third Bank (pleaded guilty to criminal conversion)
- Fifth Third Bank (pleaded guilty to grand theft (more than $7,500 but less than $150,000), ID fraud (elderly/disabled adult), ID fraud, and telecommunications fraud
- Fifth Third Bank (pleaded guilty to bank fraud)