Eagle Bancorp CFO Charles Levingston seems to have the support of the company’s board as he faces a doable enforcement action by the U.S. Securities and Trade Commission.
The SEC has indicated its staff created a preliminary determination to endorse charges versus Levingston by sending him a so-termed Wells recognize. The mother or father business of EagleBank disclosed the recognize Wednesday in an earnings launch.
But Eagle Bancorp CEO Susan Riel stated Thursday that the board experienced resolved to have Levingston carry on to provide as CFO.
“The board’s top rated priority is, as it normally has been, to act in the ideal interest of the business and the company’s stockholders, and we, and the board, continue to be confident in the company’s disclosure controls, accuracy of its fiscal reporting, and the professionalism of the company’s finance function and personnel,” she stated in an earnings get in touch with.
Levingston has been with the Bethesda, Md., lender considering that 2012 and earlier labored as a lender examiner for the Federal Reserve Banking institutions of Atlanta and Philadelphia.
The earnings launch did not specify what allegations Levingston may possibly be going through but stated he experienced acquired the Wells recognize in connection with an SEC investigation that Eagle very first disclosed in July 2019.
The lender has “initiated discussions with the staff about a opportunity resolution or settlement of the staff’s investigation with respect to the company” and “any current workers and administrators,” the launch stated.
In accordance to American Banker, the SEC has been investigating Eagle’s ties to former District of Columbia Councilman Jack Evans, who allegedly lobbied for laws that would be favorable to Eagle just after the lender employed him as a consultant. He also owned Eagle shares.
Eagle’s co-founder and former CEO Ron Paul abruptly retired in March 2019, citing wellbeing issues.
“The business believes [the investigation] relate[s] to the company’s identification, classification and disclosure of similar occasion transactions the retirement of certain former officers and administrators and the romantic relationship of the business and certain of its former officers and administrators with a nearby public formal, amid other issues,” the earnings launch said.