A former DeRidder banking officer has been fined $150,000 and banned from participating in any banking institution transactions after federal bank authorities found he had obtained bank loans illegally for his own benefit, and concealed his identity in other illegal loan activities.
Carroll Green, former chief financial officer and chairman of the board over Beauregard Federal Savings Bank (FSB) in DeRidder was issued a civil money penalty by the Office of the Comptroller of the Currency (OCC), at the U.S. Dept of Treasury, earlier this year for illegal activities committed while he served in those capacities.
According to a Consent Order of Prohibition released by the OCC dated December 16, 2021, Green was an institution-affiliated party of FSB between 2011 and 2019, serving in the role of Chief Executive Officer, Chief Financial Officer, Chairman of the Board, and President of the bank during those years and through Dec. 2021.
According to the OCC, officials found that in 2016, Green concealed his identity when he obtained a $75,000 loan from the bank for his own benefit, using a director at the bank as a borrower in name only, thereby violating bank laws and causing the bank to violate federal regulations.
In 2019, officials found that Green had again concealed his participation in financial transactions with a bank customer that resulted in the acquisition of a residential property using a nominee loan obtained in the name of such bank customer, causing the bank to violate laws and federal regulations once again.
The report went on to say that on at least ten occasions between June 2016 and Oct 2018, Green knowingly originated or caused the bank to originate unsecured or partially secured consumer loans to borrowers of the bank to provide the borrowers with funds to cover the down payment and closing costs related to real estate loans.
“These violations, practices, or breaches were part of a pattern of misconduct, caused loss or risk of loss to the bank, and resulted in financial gain or other benefit to respondent. Respondent’s misconduct demonstrated personal dishonesty, willful or continuing disregard for the safety and soundness of the bank, and a reckless disregard for the law,” the report, signed by Deputy Comptroller for Special Supervision Michael Brickman, reads.
This is the second time Green has been found in violation of federal banking regulations by the OCC.
In 2019, Green was ordered to pay $5,000 after it was discovered that between Nov. 2014 and Dec. 2016, while serving as president and director at FSB, he failed to address regular overdrafts in his business account, and failed to ensure the bank complied with insider lending laws and regulations.