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Fed enforcement actions

The Federal Reserve Board has announced three enforcement actions:

  • a $20,000 civil money penalty to be paid by First Ipswich Bank, Ipswich, Massachusetts, for flood insurance violations
  • a $36,000 civil money penalty to be paid by Brookline Bank, Brookline, Massachusetts, for flood insurance violations
  • a Notice of Intent to prohibit from banking, seeking restitution, and assessing a civil money penalty, issued to a former employee of Farmers & Merchants Bank, Baldwyn, Mississippi

A Notice of Intent is not a final action. It notifies the respondent of the Board's intent and provides the respondent an opportunity for a hearing on the allegations made in the Notice and on the Board's intended action. In this case, the respondent is charged with embezzling over $441,000 by taking cash from the bank's vault and making unauthorized withdrawals from customers' certificate of deposit accounts, and with forging bank records and lying to bank personnel about her actions. The Board intends to bar the respondent from the banking industry, require her to make restitution to the bank of $20,264.27, and assess a civil money penalty of $10,067.

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