Banking: Verrill Dana Helps Bank Respond to Discovery of Employee Loan Fraud

Maine is a small state with a wonderful work ethic. But sometimes, with no prior warning, an employee breaks the law and puts their employer in a very difficult position. This happened to one of our bank clients.

After years of working with one of its loan officers, information came to light indicating that the officer had been engaging in activities that appeared to constitute loan fraud. With our advice, the bank investigated the allegations, and then took steps to place the employee on leave and notify law enforcement. When law enforcement and the local media followed up, we advised bank management on how to respond.

Dealing with problem employees is difficult, and the challenge is compounded when an employee’s actions end up involving law enforcement and the media. Verrill Dana has both the legal and public relations experience to advise banks on both arenas, and we were pleased to have helped this bank steer through this difficult crisis.