OCC Announces Enforcement Actions for November 2023

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations.

The OCC uses enforcement actions against its supervised institutions to require the board of directors and management to take timely actions to correct the deficient practices or violations identified. Actions taken against supervised institutions are:

• Formal Agreement against Heritage Bank, National Association, Spicer, Minnesota, for unsafe or unsound practices, including those relating to capital and strategic planning, timely and adequate credit review, ongoing monitoring of the credit portfolio, and liquidity risk management. (Docket No. AA-WE-2023-32)
• Consent Order against United Fidelity Bank, FSB, Evansville, Indiana, for engaging in unsafe or unsound practices, including those relating to corporate governance and enterprise risk management, credit underwriting and administration, liquidity risk management, and interest rate risk management. (Docket No. AA-CE-2023-40)
• Consent Order against Vast Bank, National Association, Tulsa, Oklahoma, for engaging in unsafe or unsound practices, including those relating to capital ratios, capital and strategic planning, project management, books and records, liquidity risk management; interest rate risk management, information technology controls, risk management for new products, and custody account controls. (Docket No. AA-SO-2023-44)

The OCC uses enforcement actions against an institution-affiliated party (IAP) to deter, encourage correction of, or prevent violations, unsafe or unsound practices, or breaches of fiduciary duty. Enforcement actions against IAPs reinforce the accountability of individuals for their conduct regarding the affairs of a bank. The term “institution-affiliated party,” or IAP, is defined in 12 USC 1813(u) and includes bank directors, officers, employees, and controlling shareholders. Orders of Prohibition prohibit an individual from any participation in the affairs of a bank or other institution as defined in 12 USC 1818(e)(7). Actions taken against individuals are:

• Order of Prohibition against Andrew Leseberg, Former Loan Processor, The Citizens National Bank, N.A., Greenleaf, Kansas, for stealing, embezzling, or otherwise misappropriating funds at a loss or risk of loss to the Bank. (Docket No. AA-ENF-2023-31)
• Notice of Charges for Order of Prohibition against Helen Caldwell, Former Financial Advisor, Citibank, N.A., Sioux Falls, South Dakota. In the Notice of Charges, the OCC alleges, among other things, that Caldwell: solicited an elderly customer to invest, and the customer did invest, more than $200,000 in a company Caldwell co-owned; received at least $99,000 in direct payments from the company; and falsely represented that she was following, and would follow, policies prohibiting this conduct. (Docket No. AA-ENF-2023-41)

All OCC public enforcement actions taken since August 1989 are available for download by viewing the searchable enforcement actions database at https://apps.occ.gov/EASearch.

Related Link

• Enforcement Action Types