A referral agent for a Rhode Island bank was prohibited from further bank employment and ordered to pay $1 million in restitution for “violations of regulations” and unsafe and unsound practices, the federal insurer bank deposits said Friday.
In publicly releasing enforcement actions it took in October, the Federal Deposit Insurance Corp. (FDIC) said John C. Ponte, a referral agent for Independence Bank of East Greenwich, R.I., had been prohibited. According to the FDIC, Ponte originated loan applications “for the benefit of the bank.” The agency said the applications were underwritten by the bank.
“In the course of originating the potential loan applications, the Respondent participated in violations of regulations and engaged in an unsafe or unsound practice in connection with the Bank, with regard to those applications,” the FDIC said in its order. The violations and practices, the agency said, “caused the bank to suffer financial loss.” Ponte also, allegedly received financial gain and was “unjustly enriched,” the agency added.
The FDIC did not, however, provide any additional details as to the nature of the violations or practices, other than to state that Ponte’s “violations and unsafe and unsound practices demonstrated Respondent’s willful/continuing disregard for the safety or soundness of the Bank.”
Under the $1 million restitution order, Ponte must reimburse parties the agency determines were affected by his conduct. That does not, however, include the bank, the agency order stated. Ponte is also barred from seeking or accepting indemnification “from the bank or from any other insured depository institution for the restitution paid under the terms of this Order or any other expenses, including attorney fees and disbursements incurred by the Respondent, in connection with this matter,” FDIC said.
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