Links in “Fines, Penalties, Suits, and Settlements”

Gibraltar Private Bank and Trust Company was assessed a $2.5 Million civil money penalty for Bank Secrecy Act Violations. This penalty is following a Cease and Desist Order as well as a Consent Order from the OCC. [2/25/16]

After settling with the CFPB and Department of Justice, Toyota Motor Credit Corporation issues a statement that it "respectfully disagrees" with the agencies' disparate impact methodologies to determine whether industry lending practices have been discriminatory. The methodologies included using the Bayesian Improved Surname Geocoding proxy methodology to find that African-American and/or Pacific Islanders were charged higher dealer markups than similarly situated white buyers. [2/9/16]

The former president of a Texas bank issued more than $68,000 in cashier's checks to herself to pay for various living costs, including her daughter's college sorority dues. She pleaded guilty to a 10-year accounting scheme that overstate the bank's value by more than $800,000. [1/29/16]

Through the Swiss Bank Program, some Swiss banks that faced the prospect of criminal liability in the U.S. informed the Justice Department of potential tax-related criminal offenses that pertained to undeclared U.S.-related accounts. As a result of this program, Leodan Privatbank AG and the Justice Department have entered into a non-prosecution agreement. [1/26/16]

PHH Corp. of New Jersey was hit with a $6 million fine for alleged "kickbacks." The lender protested the judge's decision. CFPB Director Cordray took issue with the lender's protest and slapped it with a $109 million penalty instead. PHH appealed. Now the District of Columbia Circuit Court of Appeals has set a date to review the matter. It's a case that many in the industry are watching closely as "the first serious test of the CFPB's enforcement authority." See also here. [1/26/16]

A Houston credit union's retired executive almost got away with stealing more than $1.2 million in unclaimed checks over 18 years. Almost. [1/22/16]

Herbies Auto Sales in Greeley, Colo., advertised a 9.99% APR, but then hid in it a $1,650 required repair agreement and $100 for GPS payment reminder device. The CFPB has hit the company with $800,000 in restitution and penalties. [1/22/16]

As part of its voluntary liquidation process, Internet Archive FCU has paid out to its members of record all shares insured by the NCUSIF. NCUA had issued a cease and desist order to the credit union in November, 2015 citing the credit union’s unwillingness to open accounts and extend loans to potential members in its low-income community, violations of the Bank Secrecy Act and USA Patriot Act and a declining financial condition with increasing losses. [1/21/16]

Two men have been sentenced to five and six years in federal prison for using a poplar social media site to scam $100,000 from three large credit unions and a major bank. The scheme involved using the social media site to pay for access to debit card PINs and depositing worthless, stolen checks and altered money orders at ATMs. [1/20/16]

Flinging dubious data to charge banks with discriminatory lending, lawyers targeting a 75% success rate, and more mission creep. Here's why more of the same in 2016 is not a good thing. [1/20/16]