October 21, 2022
Fraud Friday – 5 Bankers Banned by the Federal Reserve for COVID Fraud
The Federal Reserve announced last week that they banned five former bank employees from ever working in the industry again after they submitted fraudulent applications for and obtained PPP and EIDL loans for themselves.
One of the banned bankers, Erica McRae, was formerly employed at Regions Bank where four other bankers were banned for similar reasons earlier this year in April. Between June and September 2020, she obtained a $24,000 EIDL, a $6,000 EIDL grant, and another EIDL of $36,500 based on materially false and fraudulent representations. The Order of Prohibition also discloses that she used the proceeds for personal and other expenses.
Evelyn Batista was a financial advisor at Merrill Lynch Wealth Management, a subsidiary of Bank of America Corporation. This follows the banning of two other Merrill Lynch bankers in April of this year. The Order of Prohibition claims that she obtained a $17,500 EIDL under false pretenses and used the proceeds for unauthorized expenses.
From First Horizon Bank, Carmen L. Peña applied for and obtained a $91,500 EIDL and an EIDL grant of $10,000. She since has repaid $92,611 to the SBA according to the Order of Prohibition.
The last two bankers, Lexus Clark and Arneita Glenn, previously worked at Ally Bank. Lexus Clark obtained a PPP loan of $20,833 and an EIDL of $112,500 in violation of the terms, laws, and regulations for the loans according to her Order of Prohibition. As outlined in her Order of Prohibition, Arneita Glenn fraudulently obtained two PPP loans of $19,000 each and used funds for unauthorized expenses.
All five bankers have not admitted or denied the allegations made by the Board of Governors. By accepting the Order of Prohibition, they will not have to go through formal proceedings or litigation. Should they violate any of the terms of the Order, the former bankers will be subject to the appropriate civil or criminal penalties.