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

The FBI is investigating whether an employee at the former Parsons-Pittsburg Credit Union embezzled $10 million to support a gambling habit.  NCUA took over the $13.5M credit union in January at which time the employee admitted to gambling wins and losses totaling $16M in the previous year. Now $10M in nonmember deposits have been discovered missing. [5/21]

The Federal Reserve Board on Monday announced that Credit Suisse will pay a $100 million penalty for unsafe and unsound practices and failure to comply with the federal banking laws governing its activities in the United States. As part of the order, Credit Suisse has agreed to terminate its relationship with, and not re-employ or otherwise engage, nine individuals who were involved in the actions that resulted in the violation of U.S. laws. [5/20]

Another individual, Svetislav Vujovic, has been convicted of 10 counts of making false statements to a federal credit union, two counts of money laundering and one count each of fraud and bribery. Mr Vujovic obtained dozens of personal and business loans totaling more than $30 million over a four-year period. [5/16]

A federal appeals courts ruled that a Wisconsin entertainer who bills herself as the “Banana Lady” had no basis for her suit against CUNA and two credit unions for violating her copyright. Some attendees at the CUNA Management School, where the “Banana Lady” performed posted videos and photos of her on their Facebook pages. [5/15]

Associated Bank (Wisconsin) was fined $500,000 by the OCC for inadequate training, risk management practices, and an insufficient system for tracking suspicious activity. [5/15]

This was a lesson Sallie Mae learned recently when she was required to pay $60 million in settlement penalties for violating the rights of members of the military. How did she do this? By failing to cap interest rates at 6% and forcing some members into default. [5/14]

Two debt-buying companies settle with New York for seeking court judgments against consumers after the statute of limitations on the claims had expired. The companies will pay fines and ask the courts to reverse $16 million in judgments. [5/8]

U.S. Attorney General Eric Holder is seeking to build ties with banking agencies in anticipation of what may be a wave of criminal cases against banks. [5/6]

NCUA has received approval to intervene in a lawsuit against three former employees of the now-liquidated Lynrocten Federal Credit Union. The $1.6 million dollar suit filed by Northern Piedmont Federal Credit Union alleges the three employees engaged in a loan participation fraud scheme. [5/2]

Florida money services business gets hit with civil money penalties for flaws in its anti-money laundering program. Here's a look at what caught FinCEN's attention. [5/2]