Fairfield, IA- A federal agency that regulates banks has issued civil fines against the former CEO of a Fairfield bank and a senior vice president who was responsible for about half of the bank’s portfolio of loans.
Steve Smith (KMCD) reports for Radio Iowa that According to a news release from the Office of the Comptroller of the Currency, Jared Schultz made unauthorized loans to a business partner when he was a senior vice president for the First National Bank of Fairfield and loaned money to bank customers who bought cattle Schultz owned.
Schultz was also accused of inflating collateral statements and making unauthorized loans. The agency concluded that over a roughly 33 month period, the bank suffered one-point-two million dollars in losses due to Schultz’s actions.
Schultz has been ordered to pay a 144-thousand dollar fine. Pat Hurley, the bank’s former president and CEO, has been ordered to pay a 16-thousand dollar fine for failing to ensure Schultz was engaged in safe and sound banking practices and avoiding conflicts of interest.
