Release Date: June 7, 2010
For immediate release
The Federal Reserve Board on Monday announced the issuance of a Consent Order of Prohibition against Gregory L. Fankhauser, a former President, Chief Executive Officer, and an institution-affiliated party of Heritage Bank in Topeka, Kansas.
Mr. Fankhauser, without admitting to any allegations, consented to the issuance of the Order, which was based on his alleged participation in violations of law, unsafe and unsound banking practices, and breaches of fiduciary duty that resulted in Heritage Bank filing call reports that understated the level of past due and nonaccrual loans, including by allegedly changing loan terms without obtaining proper authorization from the bank.
A copy of the Order is attached.