The credit union failed as a result of insider loan
fraud, for which a former vice president and his wife were found guilty.
It was a breach of fiduciary duty, conflict of interest, unsafe and unsound practice, and violation of law, for Respondent to: fail to remove himself from approving the Raintree loan made to a family member; administer the loan while acting as trustee for its collateral; and fail to disclose his interest in the insider loan
to the Bank and to OCC examiners.
There was only one |$90,000~ loan that we considered to be an insider loan
," Humphries says.
However, generally speaking, he said insider loan
reviews are a normal part of the NCUA exam process.
The IUOE said it reached the conclusion after conducting research into the insider loan
activity of the three principal banking subsidiaries of Bank of Florida Corporation.
But while lenders get good marks for managing "real" credit risk -- such as an individual's ability to repay credit granted or cases of insider loan
fraud -- new research from TowerGroup finds that risk managers often overlook the potential for fraud in areas other than card portfolios.
It said Spagnoletti found evidence of insider loans
for overvalued properties, big money mortgages supported by collateral that did not exist, and payments for services never rendered.
In addition, the financial services firm was also burdened by non-performing insider loans
The Insider Loans
and the related issuance of Bonus Shares constitute a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions.
We proxy management risk as the ratio of insider loans
to total loans and expect a positive correlation with the likelihood of failure.
Emphasizing the kinds of activities in which banks may engage, the author summarizes the federal laws relating to bank branching and mergers, savings associations, holding companies, subsidiaries, examinations, audits, insider loans
, tying arrangements, corporate governance, securities, and capital.
v James Asselin, et al, in which four defendants bilked the Greater Springfield Entrepreneurial Fund ("GSEF") and the Hampden County Employment and Training Consortium ("HCETC") out of approximately $800,000 in fraudulent consulting fees, personal travel, and insider loans