An enforcement action that dated back to 2022 against three Irvine, Calif., financial institutions has been terminated by the Federal Reserve, the agency said Tuesday.
The Fed said its cease-and-desist actions against Allegiant United Holdings, Nano Financial Holdings, Inc., and Nano Banc, all of Irvine, were terminated March 20.
When the action was taken three years ago, the Fed said it told the firms to hire qualified management, beef up their boards and hire an outside consultant to probe insider trading at Nano Bank. The firms were also told to hire chief executive and financial officers to build up a “sufficient number of board members,” which the bank was without. The Fed said then that those hirings were “vital to the safe and sound operations of the Bank” considering numerous remedial requirements of a written agreement signed by all three firms in 2021.
Last year, the Fed prohibited from future participation in the banking industry a former interim chief executive and director of Nano Financial Holdings and Nano Bank. The Fed said then that Anthony R. Gressak III, a former director and former interim CEO of the firms, violated a prior written agreement between the firm and the Federal Reserve. He was also fined $75,000.
In other action, the Fed said it had prohibited a former worker of a Puerto Rico bank for embezzlement. The agency said Nicolás Pérez Alvarado pleaded guilty to 10 counts of aggravated illegal appropriation and embezzlement under Puerto Rico law for misappropriating $19,800 from the bank between 2021 and 2022 while employed as deputy operations manager of a bank branch. A Puerto Rico court sentenced Pérez Alvarado and sentenced him to five years of probation. He also paid restitution of $19,800 to the bank, the Fed said.
Pérez Alvarado consented to the prohibition, the agency reported.
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