The Federal Deposit Insurance Corp. has issued scathing accusations against two former Washington bankers who helped preside over the failures of their banks.
David S. Kennelly, who worked at Bank of Clark County in Vancouver, and Teresa M. Feller, who served at Bremerton’s Westsound Bank, were both notified by the FDIC orders that they could be prohibited from working in the banking industry.
Kennelly, the FDIC alleges, “directly or indirectly participated or engaged in unsafe or unsound banking practices,” thereby soiling his fiduciary trust at the bank. Among other accusations, the agency said Kennelly “devised a plan to conceal the true financial condition of the bank by withholding updated appraisals” from regulators.
Feller, while at Westsound, performed acts that “demonstrate (her) personal dishonesty and/or her willful or continuing disregard” for the banks’ safety. A former mortgage banker and manager at Westsound’s Federal Way mortgage branch, she was terminated in 2007 after she “manipulated financial and personal information as well as appraisal and loan documentation” in a scheme to inflate the quality of applications from Russian immigrant client, the FDIC said.
In its announcement, the agency gave them both the chance to request a hearing on their possible ban from the industry.
In another federal case, the Seattle P.I. Web-only news site reported that federal prosecutors have publicized charges against Jason Rick, a former loan processor at the failed Pierce Commercial Bank of Tacoma. Prosecutors, the website said, “contend Rick and others inflated loan applicants’ incomes and hid their debts in order to extend loans.”
Pierce Commercial Bank was closed by regulators last November.