June 21, 2024

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Eagle Bancorp CFO Faces SEC Probe

Eagle Bancorp CFO Charles Levingston appears to have the support of the company’s board as he faces a feasible enforcement motion by the U.S. Securities and Trade Fee.

The SEC has indicated its staff members built a preliminary dedication to recommend expenses versus Levingston by sending him a so-called Wells see. The mother or father organization of EagleBank disclosed the see Wednesday in an earnings launch.

But Eagle Bancorp CEO Susan Riel reported Thursday that the board experienced made the decision to have Levingston go on to serve as CFO.

“The board’s major priority is, as it often has been, to act in the ideal interest of the organization and the company’s stockholders, and we, and the board, stay confident in the company’s disclosure controls, precision of its monetary reporting, and the professionalism of the company’s finance function and personnel,” she reported in an earnings call.

Levingston has been with the Bethesda, Md., lender considering that 2012 and formerly labored as a lender examiner for the Federal Reserve Banking companies of Atlanta and Philadelphia.

The earnings launch did not specify what allegations Levingston could be dealing with but reported he experienced been given the Wells see in relationship with an SEC investigation that Eagle to start with disclosed in July 2019.

The lender has “initiated conversations with the staff members about a likely resolution or settlement of the staff’s investigation with respect to the company” and “any current workers and directors,” the launch reported.

In accordance to American Banker, the SEC has been investigating Eagle’s ties to previous District of Columbia Councilman Jack Evans, who allegedly lobbied for legislation that would be favorable to Eagle immediately after the lender employed him as a consultant. He also owned Eagle shares.

Eagle’s co-founder and previous CEO Ron Paul abruptly retired in March 2019, citing well being issues.

“The organization believes [the investigation] relate[s] to the company’s identification, classification and disclosure of connected party transactions the retirement of sure previous officers and directors and the partnership of the organization and sure of its previous officers and directors with a local general public formal, amid other points,” the earnings launch said.

Photo: Wikipedia
Charles Levingston, Eagle Bancorp, enforcement motion, Susan Riel, Wells see