FDIC announces May enforcement actions

The FDIC has announced enforcement actions taken in May 2022. Among the actions listed were:

• Three orders for civil money penalties for violations of flood insurance regulations:
  • First State Bank, Paint Rock Texas—$2,000
  • Cache Valley Bank, Logan, Utah—$8,000
  • Freedom Bank, Columbia Falls, Montana—$8,250
• An order of prohibition and to pay a civil money penalty of $25,000 was issued against Susan M. Chapman, former vice president and loan officer at Fort Gibson State Bank, Fort Gibson, Oklahoma, for making unauthorized loan advances and misapplying loan proceeds and checks received by the bank to the benefit of other borrowers or customers
• An order of prohibition was issued to Brittani Buterbaugh, former senior applications specialist at First Commonwealth Bank, Indiana, Pennsylvania, for misappropriation of $71,681 from the bank (later repaid to the bank)
• An order of prohibition was issued to Tony McElveen Sr., former branch banker at Branch Banking and Trust Company (now Truist Bank), Charlotte, North Carolina, for establishing and using a fraudulent line of credit in the name of an elderly bank customer and misappropriating funds from the customer's accounts, resulting in personal gain and loss to the bank of at least $87,800
• An order of prohibition against Jason McMillan, former senior vice president and loan officer at Truist Bank, Charlotte, North Carolina, for theft of a bank customer's identity, obtaining loans in that customer's name and in the name of a fictitious entity created by McMillan

[Editor's Note: BOL's Andy Zavoina has been tracking flood insurance violations for several years. He notes there have been 17 money penalties assessed by the FDIC, OCC, and Fed so far this year, totaling $3,979,775.]