BofI Holding Inc. and its CEO Gregory Garrabrants are under federal investigation for money laundering, with part of the probe centered on regulatory documents the San Diego-based bank filed with the Office of the Comptroller of the Currency, four people "familiar with the matter" told the New York Post.
Neither the bank nor its chief executive are being accused of any criminal activity, the Post noted.
In late 2015, several parties filed lawsuits against BofI Holding claiming that the company, among other things, made false statements on its business, operational and compliance policies.
The lawsuits came after a former bank internal auditor, Matt Erhart, filed a case accusing the bank of violating whistleblower protection laws. Erhart also implicated Garrabrants, alleging that the CEO deposited certain third-party payments into a personal account and that the company's largest consumer account had personal information indicating it was Garrabrant's brother. Erhart's suit also alleged that bank management sought to avoid a written record of alleged noncompliance and illegal conduct.
The lawsuits are still in progress, and BofI Holding has moved to dismiss them, the Post wrote.
Eshel Bar-Adon, BofI's chief legal officer, declined to answer the publication's questions regarding any criminal investigations but said that the bank was unaware of any current indictments.
The Post was also unable to secure comments from the Treasury and Justice departments, OCC and SEC.