Former president and COO barred, pays $45K CMP

The OCC has issued a Consent Order against Albert P. Blank, former president and chief operating officer of First Place Bank, Warren, Ohio, prohibiting Blank from participating in the affairs of any financial institution, credit union, federal regulatory agency, the FHFA or any Federal Home Loan Bank; and imposing a $45,000 civil money penalty.

The OCC found that:

• During the period from 2008 to 2010, Blank caused the Bank to fail to properly identify and account for problem assets, to accurately report its income and capital, and ensure an adequate Allowance for Loan and Lease Losses balance.
• Blank, during 2008 and 2009, approved multiple extensions of credit without determining the borrowers’ ability to pay. The purpose of the extensions of credit was to enable troubled borrowers to make payments on pre-existing loans, thus, masking the true condition of the lending relationship and causing the Bank to continue to improperly accrue interest.
• On two occasions during 2011, while Blank was President of the Bank, the Bank failed to disclose the existence of second mortgage liens in order to facilitate the sale of a first mortgage to the Federal National Mortgage Association.
• By reason of the foregoing conduct, Blank engaged in reckless unsafe or unsound practices and breached his fiduciary duty to the Bank; which practices or breaches, were part of a pattern of misconduct, and caused a significant loss to the Bank. Blank’s misconduct demonstrated personal dishonesty and willful or continuing disregard for the safety and soundness of the Bank.