Regions Bank has agreed to pay a $51 million penalty to end an inquiry by regulators that led the Securities and Exchange Commission (SEC) to charge three former senior bank executives with fraud. In the previously announced joint investigation, the SEC, the Federal Reserve Board and the Alabama Department of Banking found that three Regions executives committed fraud by “intentionally misclassifying loans” in 2009. As a result, according to the SEC, the bank overstated its income and earnings per share.
According to the SEC, former Regions executives Thomas A. Neely Jr., Jeffrey C. Kuehr and Michael J. Willoughby circumvented internal accounting controls “and improperly classified $168 million in commercial loans as performing so Regions could avoid recording a higher allowance for loan and lease losses” in 2009. Neely Jr. was head of Regions Bank’s risk analytics group, Kuehr was head of special assets, and Willoughby was chief credit officer. Kuehr and Willoughby settled the charges by paying $70,000 each in penalties and agreeing not to serve as officers or directors of public companies. The SEC said its Division of Enforcement will continue to litigate its case against Neely.
Source: Associated Press
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.