The Office of the Comptroller of the Currency issued Cease and Desist Orders against two federally chartered institutions on 15 May 2025, targeting Eastern National Bank of Miami, Florida and EH National Bank of Beverly Hills, California for unsafe or unsound banking practices. The actions were published in an OCC news release.
In the same enforcement release, the OCC disclosed a separate civil money penalty of USD 100,000 against David Julian, the former Chief Auditor of Wells Fargo.
DEFICIENCIES ACROSS CAPITAL, LIQUIDITY AND GOVERNANCE
The Cease and Desist Order against Eastern National Bank cites unsafe or unsound practices related to strategic and capital planning, earnings performance, and board and management supervision. The order requires the bank to take corrective steps across each of those areas.
EH National Bank's order spans a wider set of deficiencies. The OCC identified unsafe or unsound practices related to management and board supervision, strategic and capital planning, liquidity risk management, interest rate risk management, and concentration risk.
Both orders replaced prior enforcement actions: Eastern National Bank's new order supersedes a cease and desist order issued in November 2020, while EH National Bank's order replaces a formal agreement from October 2023.
CIVIL PENALTY ISSUED AGAINST FORMER WELLS FARGO EXECUTIVE
The USD 100,000 civil money penalty against David Julian, former Chief Auditor of Wells Fargo, was announced in the same OCC enforcement release as the two Cease and Desist Orders. The penalty relates to conduct in Julian's prior role at the bank. The OCC has authority to take action against current and former institution-affiliated parties — a category that includes directors, officers, employees, and certain contractors — for violations or unsafe or unsound practices.
Cease and Desist Orders issued under Section 8(b) of the Federal Deposit Insurance Act require the affected institution to cease the identified unsafe or unsound practices and take affirmative corrective action within the timeframes prescribed. Failure to comply can result in further penalties, including civil money penalties or the appointment of a conservator.