OCC Terminates Enforcement Action Against GN Bank, Takes Action Against Former Bank Employees

Strategic Insights -

The U.S. Office of the Comptroller of the Currency (OCC) has terminated a 2020 cease-and-desist order against GN Bank in Chicago, citing the lender's compliance with necessary conditions. The OCC also issued prohibition orders against five former bank employees, including individuals who engaged in fraud and internal theft. The terminated order, issued in September 2020, had cited GN Bank for "unsafe or unsound practices" in areas such as strategic and capital planning, credit risk management, and board oversight.

Key Takeaways:

  • The OCC terminated a 2020 cease-and-desist order against GN Bank, citing the lender's compliance with necessary conditions.
  • The terminated order was issued in September 2020 and cited GN Bank for "unsafe or unsound practices" in areas such as strategic and capital planning, credit risk management, and board oversight.
  • Prohibition orders were issued against five former bank employees, including Lacey Ann Henry, Alonso Missael Gonzalez Ibarra, Cricel Santamaria, James P. Blose, and others.
  • Lacey Ann Henry was found to have made unauthorized cash withdrawals exceeding $41,000 from customer accounts.
  • Alonso Missael Gonzalez Ibarra was banned for stealing $36,000 from ATMs and manipulating records to conceal the theft.
  • Cricel Santamaria was prohibited from future banking activities after obtaining and distributing check images from internal systems, causing over $100,000 in losses to the bank.
  • James P. Blose, former General Counsel at Webster Bank, was prohibited from future banking activities following his conviction for bank fraud and illegal monetary transactions.
  • The OCC maintains a searchable database of all enforcement actions dating back to August 1989.

Statistics:

  • $41,000: Amount of unauthorized cash withdrawals made by Lacey Ann Henry from customer accounts.
  • $36,000: Amount stolen by Alonso Missael Gonzalez Ibarra from ATMs.
  • $100,000: Amount of losses caused by Cricel Santamaria after obtaining and distributing check images from internal systems.

Sources:

  • The Business and Financial Times
  • [No external reference provided in the original text]