OCC Announces Enforcement Actions for December 2023

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

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

• Formal Agreement against B2 Bank National Association, Mountain Iron, Minnesota, for unsafe or unsound practices, including those relating to internal controls and management oversight. (Docket No. AA-CE-2023-36)
• Cease and Desist Order against Upstate National Bank, Ogdensburg, New York, for engaging in unsafe or unsound practices, including those relating to board oversight and corporate governance; strategic and capital planning; interest rate risk management; liquidity risk management; and for engaging in violations of law, rule, or regulation relating to reports of condition. (Docket No. AA-NE-2023-59)

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 Marco Antonio Rodriguez Arango, Teller at an Oceanside, California branch of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, for taking funds from the branch bank vault for personal use which resulted in personal financial gain and a loss to the Bank. (Docket No. AA-ENF-2023-54)
• Order of Prohibition against Helen Caldwell, Former Financial Advisor, Citibank, N.A., Sioux Falls, South Dakota, resolving the Notice of Charges, in which the OCC alleged, 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. Caldwell consented to the Order without admitting or denying the allegations in the Notice. (Docket No. AA-ENF-2023-41). (Docket No. AA-ENF-2023-41)
• Order of Prohibition against Marily Sandybell Espinosa, Personal Banker, Wells Fargo Bank, National Association, Sioux Falls, for making multiple unauthorized withdrawals from a customer’s account for personal use. (Docket AA-ENF-2023-43)
• Order of Prohibition against Cheung Kin Lam, Personal Banker, JPMorgan Chase Bank, National Association, Columbus, Ohio, for embezzling funds from the Bank and falsifying bank records to conceal his theft. (Docket No. AA-ENF-2023-38)
• Order of Prohibition against Yecenia D. Perez, Former Bank Assistant Manager, Winter Hill Bank, FSB, Sommerville, Massachusetts, for misappropriating funds at a loss or risk of loss to the Bank. (Docket No. AA-NE-2023-15)
• Order of Prohibition against Terry Alan Walker, Former Customer Experience Representative at a BMO Harris Bank, N.A., location in Indianapolis, Indiana, for misappropriating funds at a loss or risk of loss to the Bank. (Docket AA-ENF-2023-34)

The OCC issues prohibition/suspension orders against individuals in response to certain criminal conduct. Pursuant to 12 USC 1818(g), in the case of a conviction against an IAP related to certain criminal violations, the OCC will issue an order prohibiting the IAP from any participation in affairs of a bank or other institution as defined in 12 USC 1818(e)(7). Actions taken against individuals are:

• Order of Prohibition against Leopoldo Lora Aguilera, Former Personal Banker, Wells Fargo Bank, N.A., Sioux Falls, South Dakota, based on his conviction for money laundering in violation 18 USC 1956 and 1957. (Docket AA-ENF-2023-47)
• Order of Prohibition against Arlando Henderson, Former Branch Manager, Wells Fargo Bank, N.A., Sioux Falls, South Dakota, based on his conviction for money laundering in violation 18 USC 1957. (Docket No. AA-ENF-2023-53)
• Order of Prohibition against Carlos Antonio Vasquez, Former Branch Manager, Wells Fargo Bank, N.A., Sioux Falls, South Dakota, based on his conviction for money laundering in violation 18 USC 1956. (Docket AA-ENF-2023-46)

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