OCC announces enforcement actions

The OCC has released a list of new enforcement actions taken against OCC-supervised institutions and individuals currently or formerly affiliated with such institutions.

Among the listed actions were the following:

• An order for a $35,000 civil money penalty, for prohibition, and for restitution against Christopher Sangster, former branch manager, South Central Bank, National Association, Chicago, Illinois
• An order for a $10,000 civil money penalty against Michael Reemtsma, former relationship manager, Heritage Bank, National Association, Spicer, Minnesota, for actions involving collateralized loan transactions
• Orders of prohibition and for restitution issued to five former institution-affiliated parties of Washington Federal Bank for Savings, Chicago, Illinois — Rosalie C. Corvite, former CFO; James R. Crotty, former VP; Jane V. Iriondo, former corporate secretary; Alicia Mandujano, former loan servicer; and Cathy M. Torres, former loan officer—for involvement in a fraudulent scheme led by the former president of the bank to embezzle funds from the bank (which the OCC in 2017 determined was insolvent and placed into FDIC receivership).
• Removal and prohibition orders against three former institution-affiliated parties of Sterling Bank and Trust, FSB, Southfield, Michigan—
  • Tina Jing Chen, former residential loan officer and/or loan consultant, who also received a Notice of Charges alleging misconduct in connection with origination of loans under the bank's discontinued "Advantage Loan Program"
  • YiHou Han, former VP, managing director for residential lending and senior loan officer; and Amy Lu, former loan officer, each of whom had pleaded guilty to a federal criminal charge of conspiracy to commit bank fraud and wire fraud

  On September 27, 2022, Sterling Bank and Trust consented to the OCC's assessment of a $6 million civil money penalty [see our earlier report] in relation to its Advantage Loan Program, due to numerous false or fraudulent loan applications.