Eagle Bancorp CFO Charles Levingston seems to have the assistance of the company’s board as he faces a doable enforcement motion by the U.S. Securities and Trade Fee.
The SEC has indicated its staff members created a preliminary perseverance to propose rates against Levingston by sending him a so-referred to as Wells notice. The dad or mum firm of EagleBank disclosed the notice Wednesday in an earnings release.
But Eagle Bancorp CEO Susan Riel stated Thursday that the board experienced made the decision to have Levingston proceed to serve as CFO.
“The board’s major precedence is, as it always has been, to act in the greatest curiosity of the firm and the company’s stockholders, and we, and the board, keep on being confident in the company’s disclosure controls, accuracy of its monetary reporting, and the professionalism of the company’s finance purpose and personnel,” she stated in an earnings get in touch with.
Levingston has been with the Bethesda, Md., bank since 2012 and earlier worked as a bank examiner for the Federal Reserve Banking companies of Atlanta and Philadelphia.
The earnings release did not specify what allegations Levingston might be dealing with but stated he experienced received the Wells notice in relationship with an SEC investigation that Eagle first disclosed in July 2019.
The bank has “initiated conversations with the staff members about a potential resolution or settlement of the staff’s investigation with regard to the company” and “any present-day workers and directors,” the release 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 legislation that would be favorable to Eagle immediately after the bank employed him as a specialist. He also owned Eagle shares.
Eagle’s co-founder and former CEO Ron Paul abruptly retired in March 2019, citing health and fitness challenges.
“The firm believes [the investigation] relate[s] to the company’s identification, classification and disclosure of connected bash transactions the retirement of selected former officers and directors and the relationship of the firm and selected of its former officers and directors with a local community official, among other issues,” the earnings release mentioned.