Federal Reserve Bans 3 Former Bank Employees From Industry Over Fraud and Misuse of Funds

The Federal Reserve has barred three former financial-industry employees from participating in the banking industry following separate cases involving customer funds, conflicts of interest and check fraud.

The Federal Reserve Board announced the three consent prohibition orders on September 18, 2026. The actions involve former employees of Northstar Bank, American Express Travel Related Services Company and Regions Bank.

The underlying orders provide considerably more detail than the Fed’s brief announcement, including allegations involving hundreds of thousands of dollars.

Former Northstar Bank Employee Admitted Misusing Customer Funds

Charles Alan Wright previously worked as a commercial loan officer for Northstar Bank in Bad Axe, Michigan.

According to the Federal Reserve’s consent prohibition order against Wright, he pleaded guilty in Michigan state court in October 2023 to one count of embezzling more than $100,000 and one count of false pretenses involving at least $1,000 but less than $20,000.

The order says Wright admitted that, while working at the bank from 2012 through 2022, he fraudulently obtained money from customers’ lines of credit and cashed customer payment checks on those loans for his personal benefit.

The Federal Reserve said the conduct involved personal dishonesty and constituted violations of law or regulation, unsafe or unsound banking practices, or breaches of fiduciary duty.

Under the consent order, Wright is prohibited from participating in the affairs of covered financial institutions without prior written approval from the appropriate federal regulator.

American Express Case Involved At Least $165,040 in Payments

The second enforcement action involves Stephanie K. Hudders, who worked as a senior business development manager in the Merchant Services Department for the Caribbean Market at American Express Travel Related Services Company.

According to the Federal Reserve’s order against Hudders, she improperly caused American Express to make at least $165,040 in payments between July 2020 and September 2022 to an outside sales agency used to recruit merchants that accepted American Express.

The order says the outside agency employed one of Hudders’ relatives and that Hudders had an undisclosed interest in the company, contrary to American Express policies.

Hudders was terminated in February 2023. She consented to the Federal Reserve’s prohibition order without admitting or denying the allegations contained in it.

The order restricts her from participating in the affairs of insured depository institutions and other covered financial organizations without regulatory approval.

Regions Bank Case Caused More Than $396,000 in Losses

The largest stated loss among the three cases appears in the enforcement action involving Elvisha White, a former relationship banker at Regions Bank’s Hickory Ridge Branch in Memphis, Tennessee.

The Federal Reserve’s order against White says she knowingly cashed counterfeit or fraudulent checks in exchange for personal benefits, including cash.

According to the order, White’s actions were part of a broader check-fraud ring that caused more than $396,000 in losses to Regions Bank.

White worked at the bank until her termination on November 1, 2024.

The Federal Reserve said her conduct involved personal dishonesty or willful or continuing disregard for the bank’s safety and soundness. White consented to the prohibition order without admitting or denying the allegations.

What a Federal Reserve Prohibition Order Means

These aren’t simply notices that the individuals no longer work for their former employers.

The orders were issued under Section 8(e) of the Federal Deposit Insurance Act and restrict the individuals from participating in the affairs of insured banks and other covered financial institutions unless they receive the required regulatory approval.

That can include serving as an employee, officer, director or institution-affiliated party at organizations covered by the orders.

The Federal Reserve regularly publishes enforcement actions involving financial institutions and institution-affiliated individuals as part of its supervisory responsibilities.

For bank customers, the three cases also demonstrate why internal controls and regulatory enforcement matter. Employees at financial institutions can have access to customer information, transactions, credit lines and other sensitive financial systems, making misconduct potentially costly even when an individual employee is involved.

Anyone who notices an unfamiliar withdrawal, check, transfer or other transaction on a bank account should contact the financial institution promptly rather than assuming the discrepancy will correct itself. Keeping an eye on account activity can help customers spot potential problems while transaction details are still fresh and easier to investigate.

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Amanda Blankenship

Amanda Blankenship is Chief Editor at District Media, Inc., leading content strategy, quality assurance, and editorial operations across high-traffic personal finance sites like SavingAdvice.com and CleverDude.com. A Wingate University graduate with a BA in Communications (Journalism focus), she brings over a decade of experience in digital publishing, writing, and team leadership in the personal finance space.