Federal Reserve Board issues enforcement action with former employee of Bank of Eufaula and S N B Bancshares, Inc.
Federal Reserve Board issues enforcement action with Small Business Bank and announces termination enforcement actions with BNP Paribas S.A., BNP Paribas USA, Inc., BNP Paribas Securities Corp., and Community Bankshares,.
VERDICT — CONFIRMED
The Federal Reserve Board on 18 June announced an enforcement action against Thomas Engelbrecht, former chief executive of the Bank of Eufaula and former director of its holding company, S N B Bancshares, Inc., barring him from future participation in the banking industry and fining him $125,000.
According to the Board's release, Engelbrecht “leveraged his position to cause the bank to provide imprudent extensions of credit to his relative's company” and participated in the fabrication of board meeting minutes. He had served as chief executive and director of the Alabama bank.
The same batch of Board actions, per the wire summary, included an enforcement action involving Small Business Bank and the announced termination of enforcement actions with BNP Paribas S.A., BNP Paribas USA, Inc., BNP Paribas Securities Corp., and Community Bankshares, Inc. Terminations of this kind are the Board's formal record that prior actions have been closed out; the release directs further enquiries to the Board's media relations office.
