News Release 2012-6 | January 18, 2012
OCC Will Hold Hearing on Charges against Patrick Adams; Agency Seeks Personal Cease & Desist Order and $100,000 Civil Money Penalty
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today announced a public hearing before an Administrative Law Judge beginning Monday, January 23, 2012, concerning an enforcement proceeding against Patrick Adams, former President and Chief Executive Officer of T Bank, N.A., Dallas, Texas.
The OCC is seeking an order that would require Mr. Adams to refrain from involving himself with any relationship with a payment processor during any future employment at an institution insured by the Federal Deposit Insurance Corporation and to safeguard non-public supervisory information, confidential customer information, and confidential documents of the institution. In addition, the OCC seeks the assessment of a Civil Money Penalty in the amount of $100,000.
The OCC has charged Mr. Adams with engaging in unsafe or unsound practices, regulatory violations, and breaches of fiduciary duty in connection with his role as President and Chief Executive Officer at the bank. Specifically, between 2005 and 2007, the OCC charges that Mr. Adams allowed the bank to engage in a relationship with a payment processor and merchants of the payment processor and that he allowed the bank to reap substantial income from the payment processor and its merchants while ignoring potential risks of harm to consumers and without ensuring that appropriate controls were in place to protect the bank against risk of loss. In addition, the OCC alleges that when Mr. Adams resigned from the bank in July 2010, he removed documents from the bank that contained confidential customer information, non-public OCC supervisory information that belonged to the OCC, and confidential bank information.
The hearing will commence at 9:00 a.m. on Monday, January 23, 2012, in the U.S. District Court for the Northern District of Texas, Eldon B. Mahon United States Courthouse, Visiting Judge Courtroom, Room 501, 501 West 10th Street, Fort Worth, TX 76102-3673. OCC administrative hearings are open to the public as required by federal law.