OCC Announces Enforcement Actions for October 2024

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 with Axiom Bank, N.A., Maitland, Florida, for unsafe or unsound practices, including those related to the bank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program and violations of 12 CFR 21.21(d)(1) and (d)(3) (BSA/AML internal controls and BSA officer). (Docket No. AA-SO-2024-83)
• Formal Agreement with First National Bank of Dennison, Dennison, Ohio, for unsafe or unsound practices, including those related to board and management oversight, credit underwriting, and credit administration. (Docket No. AA-CE-2024-49)
• Formal Agreement with First National Bank of Lake Jackson, Lake Jackson, Texas, for unsafe or unsound practices, including those related to strategic and capital planning, liquidity risk management, and interest rate risk management. (Docket No. AA-SO-2024-70)
• Formal Agreement with The First National Bank of Waverly, Waverly, Ohio, for unsafe or unsound practices, including those relating to strategic planning, capital planning, and liquidity risk management. (Docket No. AA-CE-2024-64)
• Cease and Desist Order and Civil Money Penalty against TD Bank, N.A., Wilmington, Delaware, and TD Bank USA, N.A., Wilmington, Delaware, for deficiencies in the banks’ BSA/AML compliance program. The assessed civil money penalty is $450 million. Refer to OCC News Release 2024-116. (Docket No. AA-ENF-2024-77 and AA-ENF-2024-78)

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 IAPs are:

• Order of Prohibition against Tanya Jazmin Cortez, former Teller and Concierge at Los Angeles County, California, branches of Citibank, N.A., Sioux Falls, South Dakota, for selling confidential bank customer information to a third party, resulting in check fraud and a loss to the bank of approximately $348,000. (Docket No. AA-ENF-2024-59)
• Order of Prohibition against Alexis LeaAnne Day (f/k/a Alexis LeaAnne Adcock), former Client Relationship Consultant at a Clarksville, Tennessee, branch of U.S. Bank, N.A., Cincinnati, Ohio, for misappropriating approximately $10,000 from a bank ATM. (Docket No. AA-ENF-2024-79)
• Order of Prohibition against Leronne D. Kornegay, former Associate Banker at a Brooklyn, New York, branch of JPMorgan Chase Bank, N.A., Columbus, Ohio, for engaging in a scheme to steal bank funds and falsely reporting the receipt of counterfeit bills in the bank’s general ledger. The bank suffered a loss of at least $201,000. (Docket No. AA-ENF-2024-67)
• Order of Prohibition against Lexus Inez Lewis, former Fraud Operations Specialist, at a Jacksonville, Florida, branch of Citibank, N.A., Sioux Falls, South Dakota, resolving the Notice of Charges, in which the OCC alleged, among other things, that Lewis made false representations in her employment application and became employed at the bank in violation of federal law; caused fraudulent transactions totaling at least $389,000 to incur on bank customers’ credit card accounts; and kept bank equipment without authorization. Lewis consented to the Order without admitting or denying the allegations in the Notice. (Docket No. AA-ENF-2024-14)

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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