Printer Friendly

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, 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 and its customers in connection with his embezzlement of funds for personal use.

Mr. Walder, a private banker, embezzled 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 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, and the New York State Banking Department.

The written agreement addresses Bank Secrecy Act 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, and the Federal Reserve Bank of Dallas.

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

Written agreement dated December 11, 2001

Terminated September 20, 2005

* Midwest Banc Holdings, Inc., Melrose Park, Illinois, and Midwest Bank and Trust Company, Elmwood Park, Illinois

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, Itasca, Illinois

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.
COPYRIGHT 2005 Board of Governors of the Federal Reserve System
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 
Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Announcements
Publication:Federal Reserve Bulletin
Geographic Code:1USA
Date:Sep 22, 2005
Words:743
Previous Article:Meeting of the Consumer Advisory Council.
Next Article:Changes in Board staff.
Topics:


Related Articles
The market response to environmental incidents in Canada: a theoretical and empirical analysis.
BRIDGE THREAT TIP 'NOT CREDIBLE,' FBI SAYS.
ANTI-DRUG OFFICIALS TRYING HARD SELL; AGENCIES BUY TIME FOR BETTER PLACEMENT THAN PSAS.
CITY PUTS TEETH IN WAGE LAW; CONTROLLER TO STOP PAYOUTS TO VIOLATORS.
Regulation FD: coping in the trenches: CFOs tell how the SEC's stricter disclosure rules have changed the way they release financial information...
EDITORIAL WEEK IN REVIEW.
"The List" a warrant service strategy.
"'Thou shalts" ... and better ways.
BRIEFLY.
TRASH IN THE LANDSCAPE A.V. URGED TO TAKE ACTION AGAINST ILLEGAL DUMPING.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters