Two former Regions executives banned from banking after $5 million money laundering case
Two former Regions Financial Corp. executives have been permanently banned from the banking industry by the Federal Reserve Board.
Richard Henderson and Phillip Cooper both held senior positions at Regions Equipment Finance Corporation, a Regions Subsidiary that offered business customers financing tools, including equipment financing and lease options. Last year, the pair was indicted by a federal grand jury for conspiracy in a $5 million bribery and wire fraud scheme.
The pair pleaded guilty to conspiracy to commit money laundering, and conspiracy to commit bank bribery and wire fraud affecting a financial institution.
Henderson joined REFCO as senior vice president and finance manager before he was promoted in April 2012 to chief administrative officer. Cooper was a senior vice president and asset manager.
The Federal Reserve Board previously barred them both from banking in December of 2016 for the duration of their criminal proceedings.
According to the Reserve's Order of Prohibition, Henderson agreed to pay a $1.8 million forfeiture judgement as restitution to Regions. Cooper has agreed to a $1.5 million forfeiture judgement.
The 2016 indictment accused Henderson and Cooper of recruiting Jesse Stewart Ellis, who has agreed to plead guilty to charges arising from this scheme, to establish a company with REFCO to provide residual value insurance, which manages asset value risk The men directed REFCO's business to the company, and in return, Ellis split the company's proceeds with Henderson and Cooper, the indictment charges. Cooper and Henderson hid the scheme from Regions, according to the indictment.
Over five years, REFCO paid Ellis' company $5.1 million, about $1.8 million of which went to Henderson and $1.5 of which went to Cooper, according to the indictment.
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