Enforcement Settlement Sets Bank Board Record
Triagux, Robert, American Banker
WASHINGTON -- In the largest assessment ever by the Federal Home Loan Bank Board, Paul D. Dunlap, president of Hawkeye Bancorp. in Des Moines, Iowa, and 28 associates are paying more than $1 million in fines and forfeited stock for alleged securities violations involving stock investments in four North Carolina thrifts.
The Bank Board said the investors, in acting as a single group, violated thrift change-in-control laws, stock conversion regulations, and stock ownership rules of the Securities Exchange Act of 1934.
A cease-and-desist order by the Bank Board was issued against Mr. Dunlap, who consented to the entry without admitting or denying the alleged violations, according to Bank Board documents. His associates also agreed to similar terms with the Bank Board, the federal agency said.
Messages were left at Hawkeye Bancorp., but Mr. Dunalp was out of the office and could not be reached for comment.
Mr. Dunlap and his associates, who were not identified by the Bank Board, were ordered to halt any further violations and to pay the Federal Savings and Loan Insurance Corp. $766,000 within 30 days of Nov. 6. In addition, they were ordered to deliver 24,894 unsld shares of one North Carolina thrift, Fidelity Fedral Savings and Loan Association, of Hickory, to a special account from which the shares will be sold and the proceeds delivered to the FSLIC. The Bank Board estimates the value of the shares at $348,516.
The Bank Board, which collected $560,000 as a first installment on Nov. 26, said the total amount of be received by the FSLIC as a result of this action is expected to exceed $1 million. …