A former vice president of a Fargo bank has been barred from working in the North Dakota money lending industry while an investigation continues into allegations that he stole at least $500,000.
Dean Hayek of Moorhead, who left the First International Bank & Trust Co. in March, did not challenge the three-year ban, said Robert Entringer, the assistant state commissioner of financial institutions.
Entringer said the prohibition took effect May 25. It was formally approved by the state Banking Board at a meeting last week.
Dennis Schock, First International's president, said Tuesday about $500,000 has been embezzled from the institution, and the FBI is looking into the case.
U.S. Attorney Drew Wrigley declined comment. No charges have been filed against Hayek, who did not concede any wrongdoing in settling the complaint by state regulators.
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Hayek could not be reached for comment as his home phone was continuously busy Tuesday night.
His attorney, Christopher Lancaster of Moorhead, did not return a telephone message and didn't answer his home phone. Lancaster represented Hayek in his Banking Board case.
Entringer said Hayek was accused of making fraudulent loans over several years, by using rented post office boxes on behalf of nonexistent businesses and individuals to handle bank correspondence.
Schock said the situation was discovered about a month after Hayek resigned, and the bank reported its findings to state regulators.
The money was embezzled over a period of five to eight years, Schock said.
Since the discovery, First International has implemented new internal procedures, Schock said.
Hayek began working for First International in 1992. He had experience as a commercial lender, Schock said.
Hayek left First International, he worked for a Fargo mortgage company, Schock said. He's not sure how long Hayek was employed there.
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"There were no customers' accounts that were affected by this situation," Schock said. "This isn't going to affect us at all financially. We have insurance for this type of crime ... We're strong, and we'll continue to be strong."
Entringer said the three-year ban was the longest the state Department of Financial Institutions could impose, unless Hayek is convicted of a felony crime.
Then he could be barred from the industry permanently, Entringer said.
First International, which was founded in McKenzie County in western North Dakota, has locations in nine North Dakota cities, including Fargo, Minot and Williston. It also does business in the cities of Scottsdale and Mesa, Ariz.
