Eagle Bancorp CFO Charles Levingston seems to have the help of the company’s board as he faces a achievable enforcement motion by the U.S. Securities and Trade Fee.
The SEC has indicated its personnel created a preliminary perseverance to suggest prices against Levingston by sending him a so-identified as Wells observe. The mother or father organization of EagleBank disclosed the observe Wednesday in an earnings launch.
But Eagle Bancorp CEO Susan Riel claimed Thursday that the board had made the decision to have Levingston continue to serve as CFO.
“The board’s best precedence is, as it constantly has been, to act in the most effective fascination of the organization and the company’s stockholders, and we, and the board, remain assured in the company’s disclosure controls, accuracy of its money reporting, and the professionalism of the company’s finance functionality and personnel,” she claimed in an earnings connect with.
Levingston has been with the Bethesda, Md., lender since 2012 and beforehand worked as a lender examiner for the Federal Reserve Banks of Atlanta and Philadelphia.
The earnings launch did not specify what allegations Levingston may be going through but claimed he had been given the Wells observe in relationship with an SEC investigation that Eagle initial disclosed in July 2019.
The lender has “initiated conversations with the personnel about a possible resolution or settlement of the staff’s investigation with regard to the company” and “any present workforce and administrators,” the launch claimed.
According 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 right after the lender employed him as a marketing consultant. He also owned Eagle shares.
Eagle’s co-founder and former CEO Ron Paul abruptly retired in March 2019, citing well being complications.
“The organization thinks [the investigation] relate[s] to the company’s identification, classification and disclosure of linked occasion transactions the retirement of sure former officers and administrators and the connection of the organization and sure of its former officers and administrators with a regional public formal, amongst other factors,” the earnings launch stated.
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