The Office of the Comptroller of the Currency has announced a public virtual hearing before an administrative law judge beginning January 31, 2022. The OCC will litigate enforcement actions against two individuals formerly associated with First National Bank, Edinburg, Texas (closed in 2013) — Saul Ortega, former chief financial officer, director, president, chief executive officer, and chairman of the board, and David Rogers Jr., former chairman of the board.
The OCC has charged Ortega and Rogers with engaging in violations of law and OCC orders, unsafe or unsound banking practices, and breaches of fiduciary duty regarding bank loans issued to finance a capital raise, bank loans issued to finance sales of the bank’s other real estate owned, and the bank’s accrual of interest on loans in non-accrual status. The OCC also alleges that Rogers breached his fiduciary duty with regard to bank loans to a family member’s businesses.
The OCC seeks orders that would bar Ortega’s and Rogers’ further participation in the conduct of the affairs of any insured depository institution. In addition, the OCC seeks to assess civil money penalties in the amount of $250,000 against each of them.
The virtual hearing will commence at 9:30 a.m. EST on Monday, January 31, 2022. OCC administrative hearings are open to the public as required by federal law, and the public may view the hearing. Pursuant to the joint virtual hearing protocol adopted by the administrative law judge, the press and public are not permitted to record the hearing.
Details about how to view the proceedings online and listen by telephone are available here.