U.S. prosecutors dismiss criminal charges against North Carolina bank
Now, after a motion filed by the U.S. Attorney for the Western District under the terms of a Deferred Prosecution Agreement with the bank as part of its recapitalization in 2011, the criminal charges were dropped and the Deferred Prosecution Agreement was terminated.
October 01, 2013 at 09:54 AM
4 minute read
The original version of this story was published on Law.com
In 2011, a new bank, CommunityOne, was formed in North Carolina, via a combination of other banks, and amid just a bit of controversy.
At the time, there were stipulations for the merger. The banks were required to resolve a claim made by federal prosecutors arising from a 2010 subpoena of one of its customers, who was subsequently convicted of running a Ponzi scheme.
The bank was required to pay $400,000 in restitution to the victims of the scheme, and was slapped with a criminal charging document requiring it to implement an anti-money laundering compliance plan.
Now, after a motion filed by the U.S. Attorney for the Western District under the terms of a Deferred Prosecution Agreement with the bank as part of its recapitalization in 2011, the criminal charges were dropped and the Deferred Prosecution Agreement was terminated.
“We are very pleased that the case has been dismissed and the Deferred Prosecution Agreement terminated,” said Brian Simpson, Chief Executive Officer of CommunityOne, in a statement. “The U.S. Attorney's action was a recognition of our full compliance with the DPA and our efforts over the past two years to enhance our Bank Secrecy Act/anti-money laundering programs. These efforts will continue as we also continue to serve our customers in our markets.”
This case marks yet another case regarding money laundering in recent months. The Sands Casino in Las Vegas faced charges that is had taken part in a money laundering scheme tied to one of its high rollers. Also, a federal judge approved a $1.25 billion deferred prosecution agreement with HSBC regarding violations of federal anti-money laundering sanctions.
In 2011, a new bank, CommunityOne, was formed in North Carolina, via a combination of other banks, and amid just a bit of controversy.
At the time, there were stipulations for the merger. The banks were required to resolve a claim made by federal prosecutors arising from a 2010 subpoena of one of its customers, who was subsequently convicted of running a Ponzi scheme.
The bank was required to pay $400,000 in restitution to the victims of the scheme, and was slapped with a criminal charging document requiring it to implement an anti-money laundering compliance plan.
Now, after a motion filed by the U.S. Attorney for the Western District under the terms of a Deferred Prosecution Agreement with the bank as part of its recapitalization in 2011, the criminal charges were dropped and the Deferred Prosecution Agreement was terminated.
“We are very pleased that the case has been dismissed and the Deferred Prosecution Agreement terminated,” said Brian Simpson, Chief Executive Officer of CommunityOne, in a statement. “The U.S. Attorney's action was a recognition of our full compliance with the DPA and our efforts over the past two years to enhance our Bank Secrecy Act/anti-money laundering programs. These efforts will continue as we also continue to serve our customers in our markets.”
This case marks yet another case regarding money laundering in recent months. The Sands Casino in Las Vegas faced charges that is had taken part in a money laundering scheme tied to one of its high rollers. Also, a federal judge approved a $1.25 billion deferred prosecution agreement with
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
Compliance With EU AI Act Lags Behind as First Provisions Take Effect
State AG Hammers Homebuilder That Put $2,000-Per-Day Non-Disparagement Penalty in Buyer Contracts
3 minute read
Fired NLRB Member Seeks Reinstatement, Challenges President's Removal Power
GOP-Led SEC Tightens Control Over Enforcement Investigations, Lawyers Say
Trending Stories
- 1Jury Awards $3M in Shooting at Nightclub
- 2How Clean Is the Clean Slate Act?
- 3Florida Bar Sues Miami Attorney for Frivolous Lawsuits
- 4Donald Trump Serves Only De Facto and Not De Jure: A Status That Voids His Acts Usurping the Power of Congress or the Courts
- 5Georgia Hacker Pleads Guilty in SEC X Account Scam That Moved Markets
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
