Eagle Bancorp CFO Charles Levingston appears to have the help of the company’s board as he faces a probable enforcement action by the U.S. Securities and Trade Commission.
The SEC has indicated its personnel manufactured a preliminary resolve to suggest charges against Levingston by sending him a so-known as Wells recognize. The father or mother enterprise of EagleBank disclosed the recognize Wednesday in an earnings launch.
But Eagle Bancorp CEO Susan Riel mentioned Thursday that the board experienced determined to have Levingston go on to provide as CFO.
“The board’s best priority is, as it often has been, to act in the most effective desire of the enterprise and the company’s stockholders, and we, and the board, stay assured in the company’s disclosure controls, accuracy of its fiscal reporting, and the professionalism of the company’s finance perform and staff,” she mentioned in an earnings phone.
Levingston has been with the Bethesda, Md., lender because 2012 and beforehand labored as a lender examiner for the Federal Reserve Banking companies of Atlanta and Philadelphia.
The earnings launch did not specify what allegations Levingston could possibly be facing but mentioned he experienced been given the Wells recognize in relationship with an SEC investigation that Eagle initial disclosed in July 2019.
The lender has “initiated discussions with the personnel about a prospective resolution or settlement of the staff’s investigation with respect to the company” and “any recent employees and administrators,” the launch mentioned.
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 legislation that would be favorable to Eagle soon after the lender employed him as a guide. He also owned Eagle shares.
Eagle’s co-founder and former CEO Ron Paul abruptly retired in March 2019, citing well being troubles.
“The enterprise thinks [the investigation] relate[s] to the company’s identification, classification and disclosure of associated get together transactions the retirement of specific former officers and administrators and the marriage of the enterprise and specific of its former officers and administrators with a local community official, among other factors,” the earnings launch said.