Enforcement actions.Final Decisions and Orders of Prohibition The Federal Reserve Board announced on August 17, 2005, the issuance of a final decision and order of prohibition against Walter C. Cleveland, a former employee of First National Bank, Lubbock, Texas. The order, the result of an action brought by the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. , prohibits Mr. Cleveland from participating in the conduct of the affairs of any financial institution or holding company. The Federal Reserve Board announced on September 15, 2005, the issuance of an order of prohibition against Hanspeter Walder, a former employee and officer of the New York Branch of UBS AG, Zurich, Switzerland. The order was issued relating to Mr. Walder's violations of law, unsafe and unsound banking practices, and breaches of fiduciary duties to UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System and its customers in connection with his embezzlement embezzlement, wrongful use, for one's own selfish ends, of the property of another when that property has been legally entrusted to one. Such an act was not larceny at common law because larceny was committed only when property was acquired by a "felonious taking," i. of funds for personal use. Mr. Walder, a private banker, embezzled em·bez·zle tr.v. em·bez·zled, em·bez·zling, em·bez·zles To take (money, for example) for one's own use in violation of a trust. more than $70 million from at least twenty-two UBS private client accounts under his responsibility. Mr. Walder pleaded guilty to sixteen counts of embezzlement and misapplication misapplication, n the use of incorrect or improper procedures while administering treatment; results from inadequacy in experience, training, skills, or knowledge. May also result from impairment or incompetence. by a bank officer or employee and is currently serving a ninety-seven month prison sentence. Mr. Walder was ordered to make restitution of $70 million and to pay a fine of $1 million. As required by the court at sentencing, Mr. Walder has consented to the issuance of the order of prohibition. The Federal Reserve Board announced on September 20, 2005, the issuance of a final decision and order of prohibition against Brian Bonetti, a former employee of National City Bank, Cleveland, Ohio. The order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Mr. Bonetti from participating in the conduct of the affairs of any financial institution or holding company. The Federal Reserve Board announced on September 28, 2005, the issuance of an order of prohibition against Jessica Faris, a former employee and institution-affiliated party of SunTrust Bank, Atlanta, Georgia. Ms. Faris, without admitting to any allegations, consented to the issuance of the order based on her alleged violations of law and breaches of fiduciary duty to SunTrust Bank and its customers in connection with embezzlement of funds and falsification of the bank's books and records at a cash vault processing center. The Federal Reserve Board announced on October 24, 2005, the issuance of a consent notice of suspension and prohibition against William R. Kahler, an officer of Primebank, LeMars, Iowa, a state member bank. A notice of suspension and prohibition was issued under a provision of the Federal Deposit Insurance Act that authorizes the Federal Reserve Board and other bank regulators to limit the activities of bank officials who have been charged with certain criminal offenses pending the resolution of the charges. Written Agreements The Federal Reserve Board and the New York State Banking Department announced on October 14, 2005, the execution of a written agreement by and among the Deutsche Bank Trust Company Americas, New York, New York, the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , and the New York State Banking Department. The written agreement addresses Bank Secrecy Act The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires U.S.A. financial institutions to assist U.S. government agencies to detect and prevent money laundering. and anti-money-laundering compliance at Deutsche Bank Trust Company Americas, including policies and practices relating to the provision of correspondent banking services. The Federal Reserve Board announced on October 14, 2005, the execution of a written agreement by and between Surety Capital Corporation, Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. , and the Federal Reserve Bank of Dallas The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico. It has branch offices in El Paso, Houston, and San Antonio. . Termination of Enforcement Actions The Federal Reserve Board announced on September 26, 2005, the termination of the enforcement actions listed below. * First State Bank of Warner, Warner, South Dakota Warner is a town in Brown County, South Dakota, United States. The population was 419 at the 2000 census. Geography Warner is located at (45.325271, -98.496451)GR1. Written agreement dated December 11, 2001 Terminated September 20, 2005 * Midwest Banc Holdings, Inc., Melrose Park, Illinois Melrose Park is a village in Cook County, Illinois, United States. The population was 23,171 at the 2000 census. Melrose Park had long been home to a large Italian-American population, although Mexican Americans now form the majority of the population. , and Midwest Bank and Trust Company, Elmwood Park, Illinois
Elmwood Park is a village in Cook County, Illinois, United States. The population was 25,405 at the 2000 census. Written agreement dated March 15, 2004 Terminated September 16, 2005 On October 5, 2005, the Federal Reserve Board announced the termination of the following enforcement action. * First Midwest Bank
Written agreement dated July 9, 2004 Terminated September 30, 2005 On October 25, 2005, the Federal Reserve Board announced the termination of the following enforcement action. * Ridgedale State Bank, Minnetonka, Minnesota Written agreement dated July 29, 2004 Terminated October 25, 2005 On October 26, 2005, the Federal Reserve Board announced the termination of the following enforcement action. AmericasBank Corporation and AmericasBank, Towson, Maryland Written agreement dated August 3, 2001 Terminated October 12, 2005 The Federal Reserve's enforcement action web site, www.federalreserve.gov/boarddocs/enforcement, reports the terminations as they occur. |
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