Federal Reserve issues enforcement actions against former bank employees

Federal Issues Federal Reserve Enforcement

On June 26, the Federal Reserve released enforcement actions taken against two former bank employees for improper actions, including one employee who allegedly embezzled money from a bank’s customer on several occasions, and another who misappropriated funds through false representations and accounting entries to pay off personal and family members’ loans owed to the bank. The Federal Reserve issued consent prohibitions for both former employees, which prohibits them from, among other things, participating in any manner in the conduct of the affairs of any insured depository institution, or holding company or subsidiary of an insured depository institution.