Federal Reserve bans six former bank employees over COVID loan fraud

On Behalf of | Apr 19, 2022 | Securities and Compliance

Six former bank employees have been banned by the Federal Reserve Board for fraudulent actions involving a federal COVID-19 economic relief program, reports Financial Advisor.

The Fed announced last week that it had prohibited the six from future employment in the banking industry. They were alleged to have fraudulently obtained loans and grants administered under the Coronavirus Aid, Relief, and Economic Security Act (CARES).
The action was taken against Dedryck O. Carson, Wendy Rodriguez Legon, Michael T. Lemley, and Tracy L. Mallory, all formerly of Regions Bank in Birmingham, Alabama; as well as Autumn Jordan and Manuel F. Pinazo, both formerly of Merrill Lynch Wealth Management in Charlotte, North Carolina, a subsidiary of Bank of America.

According to the Fed, the six individuals applied for and obtained CARES Act funds based on false and fraudulent representations and used the funds for unauthorized personal expenses. The board said the six did not admit or deny the conduct.

The CARES Act provided small businesses with an opportunity to receive certain loans and grants administered by the Small Business Administration to help them cope with the impact of the pandemic.

The Financial Industry Regulatory Authority has also sanctioned a number of brokers for improperly applying for COVID-19 economic relief loans

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