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

Alex Spirikaitis, former CEO of the liquidated Taupa Lithuanian Credit Union, will have a long time to consider whether the money he stole was worth the price he now has to pay. A federal court has sentenced him to more than 10 years in federal prison and he has been ordered to pay restitution of $15 million. [12/2/14]

$3.6 million North Dade Community Development Federal Credit Union in Miami, FL, has been fined $300,000 for violations that federal regulators claim may have placed the entire U.S. financial system at risk. To put that number in perspective, that would be like a fine of about $130 billion for Wells Fargo. The fine came with a warning from federal officials that risky money services business customers are flocking to smaller financial institutions because big banks have increased scrutiny. [12/1/14]

Five individuals have received orders prohibiting them from ever working at a federally insured financial institution again. But that’s not all; most of these ex-employees are also booking jail time and fines. [12/1/14]

Unfortunately, it's an increase. The NCUA raised the current 69.2% OTR to 71.8% based on a methodology that took into consideration factors including the value to the NCUSIF, cost of NCUA resources and programs, and more. But remember, credit unions with less than $1 million in assets are not subject to the fee. [11/21/14]

In FY 2013, the Department of Justice collected a mere $8 billion in fines and penalties. That number jumped to nearly $25 billion in FY 2014, thanks in large part to financial institutions. [11/21/14]

Defendants marketed their credit monitoring programs through 50+ websites with a promise of free access to their credit scores, but would then set up recurring monthly billing of $29.95. Consumers report having to repeatedly call the toll-free number to cancel. 210,000 complaints later, the FTC has ordered the companies to refund consumers $22 million. [11/20/14]

Bank of Tokyo-Mitsubishi's compliance manager asked PricewaterhouseCoopers to remove key information about the bank's misconduct in reporting transactions involving countries subject to U.S. sanctions. The move resulted in fines of $315 million, resignations, reassignments and bans. [11/19/14]

Breaking the government's streak of big dollar settlements for faulty mortgage loans, Wells Fargo lawyers came before a judge along with lawyers for the U.S. and said that it is doubtful they will be able to reach a settlement. [11/19/14]

NCUA attorneys have filed suit against Maria Hernandez, former CEO of the failed El Paso FCU to recover $19 million in funds she allegedly stole from the credit union.  According to the NCUA most of the stolen funds have been linked to unrecorded share certificates sold to non-member financial institutions that Hernandez converted for her personal use to purchase additional homes, to take lavish vacations and for gambling. [11/17/14]

CFPB orders Franklin to pay $730,000 for a compensation system that rewarded loan officers for steering consumers to higher-rate loans. On the other hand, between 2011 and 2013, Franklin Loan originated $887 million in loans. [11/14/14]