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OCC enforcement actions: HSBC Bank USA consent order lifted


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OCC enforcement actions: HSBC Bank USA consent order lifted

The Office of the Comptroller of the Currency on Dec. 14 announced a number of enforcement actions in the banking sector.

The following list excludes actions previously covered by S&P Global Market Intelligence and those that do not meet criteria for news coverage. Click here to view SNL's full database of enforcement actions against U.S. banks and thrifts.

Termination of existing enforcement actions

The OCC on Nov. 27 lifted its consent order against McLean, Va.-based HSBC Bank USA NA. The April 2016 enforcement action had been in connection with alleged violations of the Federal Trade Commission Act and came with a $35 million penalty.

Civil money penalty orders

The regulator, on the other hand, penalized Sioux Falls, S.D.-based Citibank NA over alleged violations of the National Flood Insurance Act and/or the Flood Disaster Protection Act.

Citibank on Oct. 10 was ordered to pay $452,000 in connection with the charges. It neither admitted nor denied wrongdoing.

On Nov. 2, the OCC also issued a consent order against a former board member of Webster City, Iowa-based WCF Financial Bank. It ordered Kyle Swon to pay a $15,000 civil money penalty, in connection with findings that he had breached his fiduciary duty and violated bank policy. Swon is alleged to have obtained, without proper and timely documentation or board notification, loans and maturity extensions with a higher-than-normal risk of repayment.

Swon neither admitted nor denied wrongdoing.

Personal consent orders

The OCC on Nov. 14 hit Blake Ferguson, a former Firstar Bank NA senior vice president, with a consent order. It claimed he had schemed to defraud the Sallisaw, Okla.-based bank and some customers of at least $196,560, by increasing credit lines without authorization, falsifying documentation, advancing loan proceeds and drawing on customer funds.

And Tom Whitehead, former CFO and board member of One Bank & Trust NA, agreed to consent and restitution orders. The regulator accused Whitehead of, among other violations, causing the Little Rock, Ark.-based bank to misapply more than $2.4 million in funds for the personal benefit of its CEO. He was also accused of aiding that CEO in misappropriating about $9.5 million.

On Nov. 21, Whitehead was ordered to pay $100,000. He neither admitted nor denied wrongdoing.