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Former bank officer fined

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News Park Rapids,Minnesota 56470
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Former bank officer fined
Park Rapids Minnesota PO Box 111 56470

The former executive vice president of a Park Rapids bank has been ordered by the FDIC to pay a civil penalty of $10,000 for alleged breach of his fiduciary duty.


Jon P. Smythe left his position at State Bank of Park Rapids in November 2010.

The Federal Deposit Insurance Corporation, which regulates banks, sent down two orders in the case, one in December and one May 26 that was released Friday.

In the second order, the civil penalty was reduced from $20,000 to $10,000. Smythe withdrew his request for a hearing and consented to the final order to pay "without admitting any of the allegations" in the December order.

That order accused him of making unsecured loans and renewing loans in 2007 that were counter to bank internal policies.

Current bank president Marty Peterson said he could not comment on the FDIC matters.

Smythe was unable to return a call by the time the newspaper went to press about the matter.

The bank has been operating under a Cease and Desist Order since the fall of 2008. It has worked on several recommendations the FDIC issued at the time. Peterson told Enterprise publisher Rory Palm last year that almost all of the issues have been corrected.

Sarah Smith
Sarah Smith is the outdoors editor. She covers courts, business and breaking news in addition to outdoors events.
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