The Federal Reserve Board has issued a consent prohibition order against Khalila Cooper, a former employee of First Horizon Bank in Memphis, Tennessee, after she admitted to embezzling around $34,000 from the bank. As per the enforcement action revealed on Tuesday, Cooper served as a bank teller from October 2021 until her dismissal in February 2024.
During the period from August 2023 to mid-February 2024, she misappropriated funds from the bank for her own use. The Federal Reserve determined that her conduct violated banking regulations, constituted unsafe or unsound banking practices, and represented breaches of fiduciary duty, characterized by personal dishonesty and a blatant disregard for the bank’s safety and soundness.
According to the consent order, Cooper is permanently barred from any role at federally insured financial institutions or their affiliates, unless she obtains prior written consent from the Federal Reserve or other pertinent regulatory bodies. This enforcement action is governed by Section 8(e) of the Federal Deposit Insurance Act, which empowers federal banking regulators to prohibit individuals from the banking sector for engaging in unsafe practices or violating fiduciary responsibilities.
Cooper agreed to the order without admitting or denying the charges and has relinquished her rights to a hearing or judicial review regarding the issue. The prohibition will remain in effect unless the Federal Reserve modifies or terminates it in writing. The Federal Reserve stressed that any breach of the order could result in additional civil or criminal penalties. Further enforcement actions and orders can be found in the Federal Reserve’s public enforcement database.
