WASHINGTON, D.C. — In a duo of enforcement actions, the Federal Reserve Board has imposed lifetime bans on two ex-bank employees—Jermal McGlown from First Horizon Bank and Rahimlen Dean from Manufacturers and Traders Trust Company (M&T Bank)—due to significant violations of trust, improper use of customer data, and unauthorized access to funds.
Both individuals have agreed to the prohibition orders and relinquished their rights to a hearing, thereby concluding their careers in the banking and financial services sector.
Case 1: Jermal McGlown – First Horizon Bank, Memphis, TN
Jermal McGlown, formerly employed as a wire transfer administrator at First Horizon Bank, was terminated in January 2024 after the Federal Reserve found that he had accessed and shared confidential customer information with a third party.
That third party used the stolen data to impersonate customers and initiate fraudulent wire transfers, causing the bank to suffer a $42,000 loss.
According to the Fed’s order, McGlown’s actions demonstrated:
- Violations of banking laws and regulations
- Unsafe and unsound banking practices
- Personal dishonesty and breach of fiduciary duty
As a result, McGlown is permanently banned from participating in any capacity in the operations of a federally insured financial institution, including voting rights or serving in any leadership or employee role.
Case 2: Rahimlen Dean – M&T Bank, Buffalo, NY
Rahimlen Dean, who worked as a universal banker at M&T Bank until her resignation in June 2023, misused her access to a customer’s account in a much more direct fashion.
According to the Federal Reserve’s findings, in May 2023, Dean:
- Used $5,239.79 from a customer’s account to pay off her personal credit card
- Ordered a debit card tied to the same account
- Over the course of several months, made unauthorized withdrawals totaling $25,015.50 for personal use
Like McGlown, Dean’s conduct involved personal dishonesty and a willful disregard for the safety and soundness of the institution. She too has been prohibited for life from working in the banking industry or having any involvement with federally regulated financial entities.
What Is a Prohibition Order?
An Order of Prohibition under Section 8(e) of the Federal Deposit Insurance Act is a legal mechanism that bars individuals from working in the banking industry due to misconduct that demonstrates unfitness for fiduciary responsibility.
In both cases, the individuals did not admit or deny the allegations but agreed to the terms to settle the matter without litigation.
These measures highlight the Federal Reserve’s firm position against internal fraud and unauthorized access to customer accounts. As financial institutions become more dependent on digital access and data security, regulatory agencies are intensifying their efforts against employees who misuse their roles for personal benefit.
For consumers, these incidents act as a crucial reminder to diligently monitor their bank accounts and promptly report any suspicious activities.
Keep an eye out for updates regarding enforcement actions, financial regulations, and consumer protection.
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