FDIC ISSUES REMOVAL AND PROHIBITION ORDER AND
CIVIL MONEY PENALTY AGAINST FORMER MINNESOTA BANKER
FOR IMMEDIATE RELEASE PR-58-2003 (6-12-2003)
Media Contact: Frank Gresock 202-898-6634
The Federal Deposit Insurance Corporation (FDIC) has issued a removal and prohibition order and imposed a civil money penalty against James E. Brown.
Brown was a former senior vice president, chief executive officer and director of Citizens State Bank of Kelliher, Kelliher, MN.
Brown consented to the orders without admitting or denying culpability. The FDIC's actions are based on allegations that, between 1996 and 2001, Brown misappropriated bank funds, changed the terms of loans, and made improper extensions of credit.
Under the terms of the orders, Brown must pay a civil money penalty in the amount of $4,000. In addition, he is prohibited from further participation in the banking industry without prior approval. Brown resigned from the bank on August 23, 2001.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,354 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (877-275-3342 or (703) 562-2200).