Ex-BofA employees among 6 banned by Fed over Covid loan fraud

The Federal Reserve banned six former bank employees, including two previously at Bank of America Corp.’s wealth management unit, from the industry for fraudulently obtaining loans designed to provide economic relief to small businesses during the pandemic.

On Tuesday, the Fed announced the penalties for Autumn Jordan and Manuel F. Pinazo, who previously worked at Merrill Lynch Wealth Management, along with Dedryck O. Carson, Wendy Rodriguez Legon, Michael T. Lemley, and Tracy L. Mallory, who were at Regions Financial Corp.

The regulator said all six former employees applied for assistance under one of the government’s Covid-19 relief programs “based on false and fraudulent representations and used the funds for unauthorized personal expenses.”

The former employees obtained funds through the Small Business Administration’s Covid-19 Economic Injury Disaster Loan program, according to the Fed. Authorities have been trying to crack down on abuses of that federal effort and others. 

The individuals didn’t admit or deny the conduct, according to the Fed. A representative for Bank of America declined to comment and a Regions spokesman did not immediately respond. Jordan said in a message that the actions alleged by the Fed were done “fraudulently in my name.” The others named by the Fed either did not respond or could not be reached for comment. 

[More: More brokers in hot water over bad Covid-19 loans]