Three former F&M Bank executives were fined by the Federal Reserve Board for mishandling of sensitive customer information.
According to a Federal Reserve news release Jan. 11, the three former employees of Manchester-based F&M Bank – Randy Johnson, Chad Kellogg and Jeff Hines – resigned their positions in March 2021 and “started working at another financial institution that is not supervised by the (Federal Reserve) Board of Governors.”
As part of their transition from F&M Bank to the new financial institution in March 2021, the three men “misappropriated FMB confidential information to facilitate the transferring of FMB customers to the other financial institution,” an action that “constituted an unsafe or unsound practice and a breach of fiduciary duties to FMB,” the Federal Reserve news release indicates.
Mr. Johnson, Mr. Kellogg and Mr. Hines were each fined $50,000 for their actions and were ordered to provide written notice to the Federal Reserve board within 10 days after accepting a position at another financial institution.
In addition to being fined, the three former F&M Bank executives were also ordered to “fully familiarize (themselves) with the policies and procedures of the institution that pertain to (their) duties and responsibilities, including, but not limited to, the policies and procedures concerning the handling of the institution’s confidential information.”
Mr. Johnson served as executive vice president at F&M Bank until March 2021, while Mr. Kellogg served as senior vice president for commercial lending and Mr. Hines served as senior vice president for commercial banking.
Mr. Johnson was subsequently listed as a senior vice president at Collins Community Credit Union in Cedar Rapids, while Mr. Hines was listed as a vice president there. All three men continue to be employed at CCCU, a spokesperson said.
Founded in 1925, F&M Bank has branches in Cedar Rapids, Anamosa and Monticello and in Vadnais Heights and Lino Lakes, Minnesota, as well as its headquarters in Manchester.
