A former Park Bank assistant manager has been permanently barred from any future banking industry activities without prior approval from regulators, the Federal Deposit Insurance Corp. disclosed Friday.
Lance Bauer was convicted in 2011 of embezzling nearly a quarter of a million dollars from a customer’s account. Bauer cashed in a $227,764.54 certificate of deposit that belonged to the American College of Veterinary Pathologists in 2009, when he was assistant manager at Park Bank’s Sun Prairie branch, and had spent all but $2,000 by the time he was indicted, authorities said. At his trial in U.S. District Court in Madison, assistant attorney general Grant Johnson said Bauer used most of the cash to support his drug habit, and also bought a 2007 Lexus.
Bauer was sentenced to 30 months in prison followed by three years of supervision, and was ordered to pay restitution.
In a separate enforcement matter disclosed by the FDIC on Friday, Community State Bank of Norwalk has agreed to a consent order with regulators. The order alleges the bank has been involved in “unsafe or unsound practices” and requires the bank to take steps that include adding a member to its board of directors; correcting “deficiencies” in its information systems; conducting an internal audit and creating a new budget and profit plan. The bank also will have to raise its capitalization rate, referring to the cushion available in case of defaulted loans.
As of June 30, the most recent figures available from the FDIC, the Norwalk bank had a net loss of $121,000 for the first six months of 2012 and reported assets of $26.7 million.