S&P Global Market Intelligence rounds up a selection of recent legal and regulatory developments in the bank space.
* Former Kan. credit union CEO indicted for alleged $5M embezzlement
Former Parsons Pittsburg Credit Union CEO Nita Rae Nirschl was indicted March 29 on federal charges of embezzling more than $5 million from the Parsons, Kan.-based credit union. The credit union was liquidated in March 2014.
* Citi wins mortgage crisis arbitration against Abu Dhabi fund
Citigroup Inc. won the arbitration case pursued by Abu Dhabi Investment Authority over losses related to the U.S. mortgage crisis, Reuters reported March 29.
* BofA to pay $45M over wrongful foreclosure
Bank of America Corp. will have to pay a $45 million fine for a wrongful foreclosure, The Wall Street Journal reported March 28.
* Former CFO of Mich. credit union pleads no contest to 14 state charges
Former Clarkston Brandon Community Credit Union CFO Michael LaJoice on March 27 pleaded no contest in Oakland Circuit Court to 14 state charges of $1.9 million in theft from the Clarkston, Mich.-based credit union, The Detroit News reported the same day. The credit union was placed into conservatorship in January 2016 over unsafe and unsound practices. It eventually merged into East Lansing, Mich.-based Michigan State University Federal Credit Union in March 2016.
* Wells Fargo to settle retail sales-related class-action lawsuit for $110M
Wells Fargo & Co. agreed in principle to settle a class-action lawsuit concerning retail sales practices for $110 million, pending court approval.
* Judge sentences former bank exec to 24 months in federal prison
U.S. District Judge Virginia Hopkins sentenced John Vann to 24 months in federal prison, followed by 60 months of probation, Alabama's AL.com reported March 23. Vann's sentence is in connection with a scheme to defraud BankTrust, which merged with Trustmark Corp. unit Trustmark National Bank in February 2013. Vann was area president for the Centreville, Ala., market.
* Ex-CEO of liquidated NJ credit union found guilty of bribery, fraud scheme
Former Helping Other People Excel FCU Chairman and CEO Trevon Gross was found guilty of one count of receipt of corrupt payments by an officer of a financial institution, according to a press release from the Department of Justice. The NCUA liquidated the Jackson, N.J.-based credit union in November 2015.
* Mich. CU to pay $1.1M in damages
Traverse City, Mich.-based 4Front Credit Union will have to pay damages of $1.1 million to an overdraft- and-courtesy pay service provider, Traverse City Record-Eagle reported March 19. The provider in question, John M Floyd & Associates Inc., had been originally contracted by Members Credit Union. Members merged with Bay Winds Federal Credit Union, and the resulting entity was named 4Front.