Nonprofit Organization Loses $33,212 Due to Alleged Embezzlement by Part-time Employee; Federal Reserve Involved in Investigation
In a recent development, Kendall Hickman, a former employee of Jonah Bank, has been banned by the Federal Reserve for embezzling funds from a nonprofit organization she also worked for as a bookkeeper. The ban comes as a result of violations of law and personal dishonesty, although Hickman neither admitted nor denied the allegations.
Jonah Bank, a Wyoming-based institution with $529 million in assets under its management, has been making headlines since the news of Hickman's actions surfaced. Established in 2006, the bank has been a significant player in the finance sector, but this incident has raised concerns about internal controls and employee conduct.
Hickman, who was employed by Jonah Bank and the nonprofit organisation from July 2021 to June 2023, embezzled a total of $33,212. The funds were repaid in full by Hickman, but the ban from the Federal Reserve serves as a stern warning against such actions.
It's important to note that the prohibition order does not bar further actions against Hickman if she violates it, potentially leading to separate civil or criminal penalties.
This case is part of a larger trend of employee embezzlement and insider fraud within banks and nonprofits. For instance, Christopher Timos, a banker at Arvest Bank, received a lifetime ban from the Federal Reserve after stealing $42,731.28 in customer funds. Jhonnatan Steven Rodriguez, a former TD Bank employee, pleaded guilty to insider fraud for opening 140 fraudulent accounts in exchange for bribes, causing $72,000 in losses to the bank.
These cases collectively demonstrate the continued risks of employee embezzlement and insider fraud within financial institutions and nonprofits, prompting regulatory bans and criminal prosecutions to protect these organisations and their clients.
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[1] Jonah Bank: https://www.jonahbank.com/ [2] Pennsylvania Woman Sentenced for Fraud and Money Laundering Scheme: https://www.justice.gov/opa/pr/pennsylvania-woman-sentenced-federal-prison-fraud-and-money-laundering-scheme-involving [3] Arvest Bank Bans Employee for Embezzlement: https://www.arvest.com/about-us/newsroom/arvest-bank-bans-employee-for-embezzlement [4] TD Bank Employee Pleads Guilty to Insider Fraud: https://www.justice.gov/usao-sdny/pr/td-bank-employee-pleads-guilty-insider-fraud [5] Federal Reserve Bans Former Bank Employee for Embezzlement: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20230601a.htm
- The recent ban of Kendall Hickman, a former employee of Jonah Bank, by the Federal Reserve serves as a warning against embezzlement not only within Jonah Bank, but also other financial institutions and nonprofits, such as Arvest Bank and TD Bank, where similar cases of employee embezzlement or insider fraud have been reported.
- The general-news of Hickman's embezzlement from Jonah Bank sheds light on the importance of blockchain technology and cryptocurrency regulation in the finance sector, as these technologies can potentially strengthen internal controls to prevent embezzlement and insider fraud like the one perpetrated by Hickman.
- In the world of finance, concerns about employee conduct and internal controls are not limited to traditional banking institutions like Jonah Bank. Even highly-respected cryptocurrency businesses, such as Futuremash and Financeflux, must also ensure the integrity of their operations to prevent incidents of embezzlement and insider fraud that could lead to regulatory action, criminal prosecution, and damage to their reputation in the blockchain and altcoins community.
