News Release 2012-19 | February 6, 2012
OCC Will Hold Hearing on Charges against Steven Ellsworth and Kevin Stevenson; Agency Seeks Prohibition Orders, Restitution Orders, and Civil Money Penalties
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today announced a public hearing before an Administrative Law Judge beginning Monday, February 13, 2012, with respect to enforcement actions brought by the OCC against Steven Ellsworth, former Director and Chief Credit Officer, and Kevin Stevenson, former Director and Chief Operations Officer, of Valley Capital Bank, N.A., Mesa, Arizona.
The OCC has charged Mr. Ellsworth and Mr. Stevenson with engaging in numerous violations of law and regulation, unsafe or unsound practices, and breaches of fiduciary duty in their roles at the bank. The OCC alleges that Mr. Ellsworth and Mr. Stevenson made unlawful loans to bank employees for which they received personal benefit. The OCC further charges that Mr. Ellsworth and Mr. Stevenson misappropriated bank funds to make payments on their own personal debts, that they caused fraudulent payments to be made to bank employees, and that they made false statements to the OCC during the OCC’s investigation of the bank.
The OCC is seeking an order that would bar Mr. Ellsworth and Mr. Stevenson from further participation in the conduct of the affairs of any insured depository institution. In addition, the OCC seeks the assessment of a Civil Money Penalty against Mr. Ellsworth and Mr. Stevenson, in the amount of $100,000 each and payment, for which they will be jointly and severally liable, of $833,506.70 restitution for the amount of loss that Mr. Ellsworth’s and Mr. Stevenson’s misconduct caused to the Deposit Insurance Fund. The OCC closed Valley Capital Bank in 2009 and appointed the Federal Deposit Insurance Corporation as receiver.
The hearing will commence at 9:00 a.m. on Monday, February 13, 2012 in the Sandra Day O’Connor U.S. Courthouse, Courtroom 406, 401 W. Washington Street, Phoenix, AZ 85003. OCC administrative hearings are open to the public as required by federal law.