Former banker ordered to pay $140K CMP
Winston-Salem, NC
Fine Amount:
$140,000
Penalty Type:
Issued by:
John Richard Lamm, formerly a Regional Corporate Banker and Senior Vice President for Branch Banking and Trust Company, Winston-Salem, North Carolina, has been issued by the FDIC a Notice of Intention to Prohibit from Further Participation, Notice of Charges, Notice of Assessment of Civil Money Penalty, Findings of Fact and Conclusions of Law, Order to Pay, and Notice of Hearing. The FDIC determined that Lamm ("Respondent") "has directly or indirectly participated or engaged in unsafe or unsound banking practices, and/or acts, omissions or practices which constitute breaches of his fiduciary duty as an employee of the Bank; that as a result of such conduct, the Bank has suffered financial loss or other damage, the interests of its depositors have been prejudiced or could be prejudiced, and/or the Respondent has received financial gain or other benefit."
The FDIC alleges that Lamm manipulated a bank incentive plan by self-reporting existing business as new business for at least five years, resulting in the Bank paying him incentive payments of $323,593 to which he was not entitled.
UPDATE - 4/27/2018: In May 2012, the Unites States brought an in rem civil forfeiture action for $323,593, which was settled with Lamm for $254,236.78. On 3/20/2018, the FDIC Board issued a Decision and Order to Dismiss Notice of Charges.
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