Pub. 11 2014 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 14 NMBA Associate Member A teller at “Bank A” opened a personal account at “Bank B” and thenwrote checks back and forth between that account and his personal account at “Bank A”. Each check was written and deposited to cover the check written the day before. Two weeks later the employee depositedapaycheck and stoppedwriting checks between the accounts. Management reviewed the bank statements and discovered the activity. Upon questioning, the employee explained that the money was just kind of borroweduntil paydaybecauseof apersonal cashproblem. SECURITY OFFICER’S BY-WORD By Charles M. Towle, KBS President Kansas Bankers Surety Another employee wrote a Cashier’s Check to pay for her daughter’s college tuition. She did not pay for the Cashier’s Check. The Cashier’s Check was hon- ored by the bank and was still not fund- ed. On payday the employee paid for the Cashier’s Check. The bank had already begun investigating a balancing problem with the Cashier’s Check account. Upon questioning, the employee explained that the tuition was due before payday, but that she paid the bank back as soon as she could. A bank president had funds wired from the bank to his broker without an offset- ting debit to pay for the wire transfer. Two bank officers became aware that the correspondent account was out-of-bal- ance and learned that the bank president had wired the funds without paying for the wires. Two months later the bank president borrowed money from another bank to pay for the wires. A bank employee who was a notary public signed as notary specifically de- claring that a mortgage was signed by both husband and wife in the actual pres- ence of the notary. The wife later claimed to have been out of town on the date of signing. Upon questioning, the notary public admitted that only the husband had signed in the notary’s presence, but he had assured the notary that his wife had signed the mortgage. A customer told a bank officer that a bank employee had been caught shoplift- ing from his business. Upon questioning, the employee explained that she had giv- en back the merchandise and had accept- ed a criminal diversion program. Upon completion of the diversion program, the criminal charges would be dropped. A teller was seen putting money from her purse into the teller drawer. Upon questioning she explained that she was putting back the ten dollars she had tak- en so she would have cash for lunch. A loan officer deleted her customer’s loans from the past due list even though the loans were still past due. She submit- ted the false past due listing to the Board. Upon questioning she explained that she didn’t want the Board to know how many customers of hers were past due. She stated she would start working with the customers to bring the loans current im- mediately. A bank owner learned his son had bro- ken into a liquor store and stolen some Any Dishonest Act Will Cause Job Loss