$24,315 Drained From Customers’ Bank Accounts After Employee at Major US Lender Goes Rogue: FDIC Report

The Federal Deposit Insurance Corporation (FDIC) says a former US bank employee has admitted to stealing thousands of dollars from customers’ accounts.

The FDIC accuses Derrick Alan Smith of directly or indirectly violating laws and recklessly engaging in unsound and unsafe practices while working as a branch banker at the North Carolina-based lender Truist Bank.

In a new enforcement notice, the regulator says that between April 23rd, 2019 and October 7th, 2019, Smith repeatedly filled out blank checks to execute numerous cash withdrawals under the names of Truist Bank customers without their knowledge or authorization.

According to the FDIC, Smith managed to embezzle a total of $24,315.15 from four different customer accounts in 16 separate transactions.

The regulator says Smith’s misconduct led to financial losses for Truist Bank as the lender had to reimburse the customers involved.

“Respondent’s violations and practices involved personal dishonesty and demonstrated Respondent’s willful or continuing disregard for the safety or soundness of the Bank.”

Smith’s employment at Truist ended on October 8th, 2019. About a month later, he was arrested and charged with four counts of felony forgery under the Code of Laws of South Carolina. He pleaded guilty to three counts of misdemeanor forgery.

In addition to his arrest, the FDIC is ordering Smith to pay a $35,000 civil money penalty and a $24,315 restitution.

Truist Bank is the eighth-largest chartered commercial bank in the US according to the Federal Reserve, with $526.714 billion in consolidated assets.

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