|
 |
|
|
|||
|
 |
|
Apr. 1, 2010 Des Moines Register reports: A Woodbine, IA, bank officer has been prohibited from working for any financial institution and was fined $40,000 for "reckless unsafe and unsound practices," according to the Federal Deposit Insurance Corp. Kenneth Waite, 58, is accused of causing a loss of $3.3 million to the Bank of the West, through acts that "involved personal dishonesty and demonstrated a willful and continuing disregard for the safety and soundness" of the bank, according to an enforcement order released Friday. He is also accused of causing a loss of at least $873,000 at Farmers Trust and Savings Bank in Earling, Ia. Waite entered into a stipulation and consent agreement with the FDIC in February without admitting or denying the charges. Waite did not return a call seeking comment Monday. As a business development officer at Bank of the West, which purchased Commercial Federal Bank in December 2005, Waite is accused of failing to monitor the financial condition of borrowers and their cattle, which were used as collateral for the loan, according to documents filed by the FDIC. Waite is also accused of transferring more than $4 million from accounts of other borrowers into the accounts of Ed, Ryan and Tina Sullivan without authorization. The Sullivans, as of April 2006, had a principal balance of $8.8 million on a line of credit for cattle. The three also had a principal balance of $1.4 million on lines of credit for crops and real estate, the FDIC documents say. The Sullivans had a net worth of $4.1 million, including 9,065 head of cattle for sale, in 2005 and a net worth of $3.7 million, including 9,850 head of cattle for sale, in 2004, according to financial statements prepared by Waite. In April 2006, according to financial statements not prepared by Waite, the Sullivans had a negative net worth of $1.5 million, including 5,157 head of cattle for sale. The FDIC says Waite "failed to adequately monitor and notify Bank of the West of the Sullivans' declining financial position and thousands of missing heads of cattle collateral." Between October 2004 and November 2005, Waite also transferred more than $4.2 million from other Bank of the West customers to the Sullivans' accounts, and then back to those customers with interest, according to the FDIC. Bank of the West claims it took a financial loss of $3.3 million related to these actions. Waite resigned from Bank of the West in August 2006, the filing shows, and started working for Farmers Trust and Savings Bank as a vice president the same month. There, Waite is accused of breaching his fiduciary responsibility concerning a loan to John Reisz of Crossroads Cattle Co., a customer who followed him from the Bank of the West. Waite told the bank that he authorized Reisz to use proceeds of cattle sales for property improvement and to pay off other loans not secured by the cattle in violation of the loan agreement. Farmers Trust and Saving Bank has had to charge off more than $873,000 as of July 29, according to the FDIC documents. Tweet |
|
|
|
|
|
|
|
|
|||||||||||||
