The Federal Reserve Board has issued an order prohibiting Chandlar Groce, a former employee of Arvest Bank in Fayetteville, Arkansas, from participating in the affairs of any insured depository institution.
He also be prohibited from any holding company of an insured depository institution, or any subsidiary of such holding company, or any foreign bank or company to which subsection (a) of 12 U.S.C. § 3106 applies and any subsidiary of such foreign bank or company, Fed issued the order on Tuesday.
According to the order, Groce was also prohibited from soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, consent, or authorization with respect to any voting rights in any such institution, or violating any voting agreement previously approved by any Federal banking agency.
Additionally, Groce was prohibited from voting for a director, or serving or acting as an institution-affiliated party, as defined in sections 3(u) and 8(b)(3) of the FDI Act, in any such institution.
The order was issued in connection with Groce's misappropriation of customer funds while she was employed at Arvest Bank. Groce admitted to transferring $6,617.24 from an elderly customer's account to her own accounts without authorization.
The Federal Reserve Board's action against Groce is a reminder that banks have a responsibility to protect their customers' funds. Banks should take steps to prevent employee fraud, such as implementing strong internal controls and training employees on how to identify and report suspicious activity.
In addition to the order against Groce, the Federal Reserve Board has also taken the following enforcement actions in recent months:
Issued a cease-and-desist order against a bank for violating the Fair Lending Act.
Fined a bank $10 million for violating the Bank Secrecy Act.
Ordered a bank to divest its ownership of a mortgage servicing company.
These enforcement actions demonstrate the Federal Reserve Board's commitment to protecting consumers and ensuring that banks operate in a safe and sound manner.
Arvest Bank is a regional bank headquartered in Bentonville, Arkansas, with over 200 branches in Arkansas, Missouri, Kansas, and Oklahoma.
The order details:
Chandlar Groce, a former employee of Arvest Bank in Fayetteville, Arkansas, was found to have misappropriated $6,617.24 from an elderly bank customer's account. She was prohibited from participating in any manner in the conduct of the affairs of any institution or agency specified in section 8(e)(7)(A) of the FDI Act, including, but not limited to, any insured depository institution or any holding company of an insured depository institution, or any subsidiary of such holding company, or any foreign bank or company to which subsection (a) of 12 U.S.C. § 3106 applies and any subsidiary of such foreign bank or company. Groce was also prohibited from soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, consent, or authorization with respect to any voting rights in any institution described in section 8(e)(7)(A) of the FDI Act, or violating any voting agreement previously approved by any Federal banking agency. Additionally, Groce was prohibited from voting for a director, or serving or acting as an institution-affiliated party, as defined in sections 3(u) and 8(b)(3) of the FDI Act, in any institution described in section 8(e)(7)(A) of the FDI Act.