Hoosier Banker 25 chicago indianapolis st. louis milwaukee A full service business law firm with a simple promise -- put you first 201 North Illinois Street, Suite 1400 Capital Center, South Tower Indianapolis, Indiana 46204-4212 T: 317.464.4100 | F: 317.464.4101 | salawus.com Growing in Indiana to meet your company’s legal needs ANDREW PODGORNY | LARRY TOMLIN | STEPHEN STITLE | MARK WENZEL | BRANDT HARDY | PHIL FOWLER ELIZABETH TRAYLOR | MARTHA LEHMAN | DEBRA MASTRIAN | JOHN TANSELLE Of course, financial institutions are subject to federal statutory and/or regulatory requirements that prohibit persons with certain criminal records from being employed or holding certain positions. For example, subject to certain exceptions, Section 19 of the Federal Deposit Insurance Act (12 U.S.C. 1829) prohibits, without the prior written consent of the Federal Deposit Insurance Corp., a person convicted of any criminal offense involving dishonesty or breach of trust or money laundering (covered offenses), or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for a covered offense, from becoming or continuing as an institutionaffiliated party, owning or controlling, directly or indirectly an insured depository institution, or otherwise participating, directly or indirectly, in the conduct of the affairs of the insured institution. In addition, the law forbids an insured institution from permitting such a person to engage in any conduct or to continue any relationship prohibited by Section 19. It imposes a 10-year ban against the FDIC’s consent for persons convicted of certain crimes enumerated in Title 18 of the U.S. Code, absent a motion by the FDIC and court approval. Note that Section 19 does not cover arrests or convictions that have been “completely expunged.” For an expungement to be considered complete, no one, including law enforcement, is permitted access to the record, even by court order under the state or federal law that was the basis of the expungement. Therefore, financial institutions may ask about relevant criminal history in an employment application. Financial institutions should be mindful, however, of the EEOC’s Enforcement Guidelines and ensure that the use of criminal history information is not discriminatory. HB Ralph B. Sprecher, 76, independent lead director of United Community Bank, Lawrenceburg, died June 29. He previously chaired the board and served as a IN MEMORY OF director for more than 30 years. Sprecher worked with Joseph E. Seagram and Sons for 35 years, retiring in 1998 as vice president of operations and plant manager. A past board member of the Wernle Children’s Home, he was a graduate of Shepherd College. HB
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