Financial Institution

Former CU CEO Banned From The Industry

The National Credit Union Administration issued three prohibition notices in April 2023. Among them is Tara Kewalis, a former president and CEO of Skyline Financial Federal Credit Union, Waterbury, Conn., who was permanently prohibited from participating in the affairs of any federally insured depository institution.

According to court documents and statements made in court, the Department of Justice said from approximately September 2016 until her employment was terminated in March 2021, Kewalis used her position to access the credit union’s accounting system to create fraudulent accounts and make fraudulent entries, and steal $254,532 in credit union funds.

Kewalis pleaded guilty to one count of embezzlement by a credit union officer or employee. She served as president and CEO from September 2016 until her termination. She began her employment at Skyline Financial in or about May 1993.

OCC Initiates CeaseAnd-Desist Proceedings Against Bank

The Office of the Comptroller of the Currency initiated cease-and-desist proceedings against Dunkirk, N.Y.-based Lake Shore Savings Bank for noncompliance with the July 13, 2022, formal agreement, including for unsafe or unsound practices relating to information technology security and controls, and board of directors and management oversight of corporate risk governance.

The OCC also found deficiencies, unsafe or unsound practices, and violations of law, rule, or regulation related to Bank Secrecy Act/Anti-Money Laundering risk management.

The Comptroller, in an order dated March 17, instructed the bank’s board of directors to maintain a compliance committee of at least three members of which a majority should not be employees or officers of the bank or any of its subsidiaries or affiliates.

By March 31, and thereafter within 10 days after the end of each month, the compliance committee must submit to the board of directors a written progress report including a detailed description of the corrective actions needed to achieve compliance with each article of the OCC’s order; the specific corrective actions undertaken; and the results and status of the corrective actions.

Lake Shore, which has 11 branches in Chautauqua and Erie counties, reported net income of $5.7 million in 2022, down 8% from the year before.

Tainted Money Sends NJ Bank Workers to Hospital

Money tainted with an unknown substance led to several employees at a Newark, New Jersey, bank ending up hospitalized after falling ill, according to the city's Public Safety Director Fritz Fragé.

NBC New York reported the strange events unfolded shortly after 12 p.m. at a Wells Fargo Bank located on Lyons Avenue. It was at that time that Newark Police was reporting to the bank for a possible hazmat incident, according to Fragé.

Allegedly a man entered the bank and handed a bank teller cash tainted with the unknown substance. The bank was subsequently evacuated after at least three workers reported feeling sick, Fragé said.

Three employees were rushed to Newark Beth Israel Medical Center for evaluation. The victims were said to be in stable condition.

Love Of Patriots Leads To Quick Arrest

Police in Central Massachusetts quickly caught an alleged bank robber thanks partly to his love of the New England Patriots, authorities said.

Todd Mitchell, age 46, of Northbridge, faces a single charge of unarmed robbery from the April 11 heist of a Santander Bank, Northbridge police said.

A customer at the 1234 Providence Road bank called 911 just after 9 a.m. to report a robbery, authorities said. The caller gave police a detailed description of the suspect and told officers where he ran when he left the building.

Within minutes, police found Mitchell nearby in front of Shaw's Supermarket. He matched the caller's description of the robber and had nearly $2,000 in cash in his pockets, authorities said. Officers arrested him without incident.

Though, he wasn't wearing what the 911 caller had described. After a short search, detectives found the mask, gloves, and distinctive Patriots hoodie tossed in a nearby dumpster, police said.

According to the Daily Voice Worcester, it's unclear if he was allegedly trying to hide evidence or making a statement about the team's struggles in recent seasons.

NCUA Liquidates InterAmerican FCU

The Nation Credit Union Administration liquidated the Inter-American Federal Credit Union in Brooklyn, N.Y., after determining it was not operating in a safe and sound manner.

Inter-American, with assets of $727,157, posted a net income loss of $21,905 at the end of the fourth quarter. The credit union also recorded a delinquent loans plus net charge-offs ratio of 21.89%, which was substantially higher than the peer average of 3.87%, according to NCUA financial performance reports.

In June, the federal agency publicly released a cease-and-desist order against the credit union, which served 460 members.

According to a report on cutimes.com, the order required the credit union to take eight actions such as resolving the out-of-balance conditions with loans, shares, cash and undivided earnings, obtaining an AIRES share and loan download and reconciling the download to the general ledger, and providing written, supporting documentation for the resolution of all out-of-balance conditions.

Provident Bank Donates Former Jersey City Branch

Provident Bank, a leading New Jersey-based financial institution, has announced the donation of one of its former branches to New City Kids, a Jersey City-based nonprofit organization that offers after-school programming for local youth from traditionally under-resourced urban areas. The 5,472-squarefoot building, located at 533 Bergen Ave., Jersey City, will be known as the New City Kids Rubingh Center for Youth Development, and will serve as the organization’s fourth Jersey City location.

“Our commitment to this community runs deep,” said Chris Martin, Executive Chairman, Provident Bank. “Lending a helping hand in the communities we serve and making a positive impact is fundamental at Provident. It’s extremely gratifying to give back to the community where Provident was founded in 1839.”

In addition to the bank’s donation of the building, The Provident Bank Foundation has pledged a multi-year commitment of $100,000 to New City Kids. The funds will be disbursed over a 4-year period and will be used for building upgrades, operational support, and programming at the New City Kids Rubingh Center for Youth Development.

Following the donation of this branch to New City Kids, Provident Bank will operate five locations in Jersey City.

Suspects Wanted For Stealing Debit Cards, Pin Numbers From Seniors

Police are searching for a crew of con artists crisscrossing New York City, targeting unsuspecting seniors at cash machines.

They are wanted for stealing debit cards and pin numbers and have struck at least 15 times, getting away with nearly $77,000.

One victim, who goes by 'Joe,' asked Eyewitness News not to reveal his real name or show his face but wanted viewers to hear about what happened to him last month as he withdrew cash at his local Citibank, in Riverdale.

"I felt a tap on my left shoulder, and I turned around to see who it was, and it was a lady," Joe said. "She pointed to the floor and said, 'sir you dropped some money,' so I bent down to pick it up and that was my mistake. There was a man standing next to her, reached around in that split second and palmed my card."

WSFS Bank: Fears Of Economic Downturn Impacting Financial Security

A new survey from WSFS Bank found Americans are confident managing their money, including 91% of respondents in the Greater Philadelphia and Delaware region (89% nationally), but 34% in the region were not confident they could weather an economic downturn or recession (41% nationally).

The study found 34% of regional respondents (39% nationally) were not confident they could afford rising costs of living, and many are making changes to their spending habits as a result.

Nearly two-thirds (61%) of total regional respondents said they are cutting back on non-essential spending, compared to 69% nationally, while 42% of regional re- spondents said they are delaying a large purchase like a home, car or furniture. Thirty-eight percent of regional respondents are focusing more on paying down debt because of rising costs, while 33% are tapping into their savings to help pay for everyday items.

Rising costs and interest rates have also resulted in 25% of regional respondents saying they have more debt now than a year ago. Among regional respondents, Black (71%) and White (74%) respondents were more likely to cite higher prices and cost of living due to inflation as a reason for their increased debt than Hispanic or Latino (57%) respondents.

Half (52%) of regional residents said if faced with an emergency expense of $1,000 or more, they would have to borrow money, take out a loan or pay it off with a credit card over time. Sixty-one percent of regional Hispanic or Latino respondents would need to do this compared to 50% of White and 46% of Black respondents.

CSBS Annual Community Bank Survey Now Open

The Conference of State Bank Supervisors encourages community banks to participate in its 10th annual National Community Bank Survey, open now through June 30.

This is an opportunity for community banks to share their perspectives on community banking, the economy, regulation and supervision with state and federal policymakers. This year’s questions focus on current bank conditions and emerging issues, including inflation, product service design and offerings, banking expenses and the future of community banking.

The survey takes approximately 20-30 minutes to complete, and responses may be entered during multiple sessions now through June 30. Participating community banks will need to provide their FDIC certificate number, but all information collected is for research purposes only and will not be linked to any institution.

Survey results will be released at the annual Community Banking Research Conference, sponsored by CSBS, the Federal Reserve and the FDIC. Last year’s survey of nearly 500 community banks showed that economic conditions and net interest margins rank as the top external risk while cybersecurity is the top internal risk for community banks.

For more on CSBS, go to www.csbs.org.