The Office of the Comptroller of the Currency (OCC) took action against the former CEO and board chair of Grand Bank for Savings of Hattiesburg, Miss., for allegedly violating conflict of interest requirements, engaging in unsafe or unsound practices, and breaching his fiduciary duty.
According to an OCC consent order, Edward Langton received a personal commission of $120,000 for serving as a broker on a real estate transaction for the bank despite being directed not to do so.
In March 2022, Langton negotiated a real estate purchase on behalf of the bank and later told two directors he wished to receive a personal commission for the transaction.
Despite being directed not to take a commission on the sale, because he was receiving a salary from the bank, Langton did so anyway. He also failed to disclose his intent to receive, and his receipt of, a personal commission on this real estate transaction to the bank’s board of directors.
“[Langton’s] misconduct resulted in financial gain [for himself] and loss to the bank for the commission paid,” the OCC consent order stated. “In addition, through his misconduct, [Langton] demonstrated personal dishonesty and a willful and continuing disregard for the safety and soundness of the bank.”
As a result of his actions, the order prohibits the former executive from engaging in any conduct related to the operation of any institution or subsidiary under the jurisdiction of the OCC indefinitely.