A former senior management official at First National Bank (Bagley, Minn.) has been barred from future service in financial institutions and ordered to pay a $15,000 civil money penalty for causing the bank to pay her annual bonuses above the amounts approved, according to an enforcement order made public last week.
The order executed with the Office of the Comptroller of the Currency (OCC) states that Lorraine Hahn, while serving as vice president of human resources and chief operations officer of the bank, misappropriated $72,700 in bank funds by “causing the Bank to pay her annual bonuses in amounts greater than those approved by the Bank through her unilateral control over the Bank’s payroll process.”
Hahn entered into a consent order, neither admitting nor denying any wrongdoing, the order states.
Other orders release Friday included a removal and prohibition order, a formal agreement, and three terminations of enforcement actions.