Parker Ordered to Pay $75,000

By Will Johnson
Messenger Reporter

AUSTIN – The Texas Department of Banking has issued a new Consent Order against Diane R. Parker, the former director and vice-president of Elkhart State Bank.

According to an Aug. 9 press release Texas Banking Commissioner Charles G. Cooper “… determined that Parker caused losses to the Bank by her activities, and that those activities constitute violations of Texas Finance Code Title 3, Subtitle A.”

“The Commissioner also determined,” the media release continued, “that as a result of those violations, Parker exposed the Bank and its depositors, creditors, and shareholders to harm. The Commissioner found that Parker’s actions support the issuance of an order requiring payment of a penalty in the amount of $75,000.”

Parker had previously been issued a Consent Removal Order on Aug. 28, 2014 which removed her “… as director and vice-president and from any other employment by The Elkhart State Bank, Elkhart, Texas and as director and vice-president of Elkhart Bancorporation, Inc.”

The Removal Order perpetually prohibited Parker form:

  • Serving as a director, officer, or employee of a state bank, holding company of a state bank, or state trust company, or as a director, officer, or employee with financial responsibility of any other entity chartered, registered, permitted, or licensed by the Banking Commissioner under the laws of this state.
  • Directly or indirectly participating in any manner in the management of such entity.
  • Directly or indirectly voting for a director of such an entity.
  • Soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent, or authorization with respect to voting rights in such an entity.

In the Aug. 9, 2018 Consent Order, the Banking Commissioner found Parker “… caused losses to the Bank by her activities, including misusing repossessed assets, testifying falsely under oath to the Commissioner and refusing to be examined by the Commissioner, concealing information from the Commissioner by causing the Bank’s security camera to be turned off, and violating the Commissioner’s order to timely return Bank property to the Bank.”

The order also indicated Parker was ordered to pay $30,000 to the Federal Deposit Insurance Corporation in 2017.

She was further ordered to provide the Texas Department of Banking with a financial statement.

“The Department informed Respondent that the administrative penalty would be based on financial information she submits and any financial information already known to the Commissioner. Respondent did not respond to this request,” the Consent Order reported.

In addition to the $75,000 penalty owed to the Department of Banking by Aug. 17 of this year, Parker is prohibited “… from seeking or accepting indemnification from any bank chartered by the State of Texas for the administrative penalty assessed and paid in this matter.”

Will Johnson may be contacted via e-mail at wjohnson@messenger-news.com.