(Washington, D.C.) – It was publicly announced on March 30th, that former Wyoming bankers Frank Smith and Mark Kiolbasa were banned from the industry by the Federal Reserve Board.
The two took proprietary information and customers from Central Bank & Trust, whose main office is in Lander, to invest in a competitor, Farmers State Bank, of Pine Bluffs, Wyoming.
Their ban is based on a “breach of fiduciary duties and engaging in unsafe or unsound practices,” according to the Federal Reserve Board’s 54-page Final Decision document which is dated March 24th, 2021.
The document also shared that from approximately 2010 through Kiolbasa’s departure on or around September 19th, 2014, he served as a loan officer and President of Central’s Cheyenne branch.
As for Smith, from approximately 2008 through his departure on March 18th, 2015, he was Central’s Chief Financial Officer and acted as the bank’s Customer Information Security Officer from at least December 2013 through his last day of employment.
Central Bank & Trust shared the following statement with County 10 in regard to the Federal Reserve Board’s Final Decision:
“Central Bank & Trust caught these two birds ‘with their pants down’ (as per the testimony of Mark Kiolbasa) as they were fiddling with the Bank’s customer information. We then referred the matter to the proper authorities, and experts in these matters, a Judge and Jury in Laramie County, Wyoming, and the Federal Reserve Board.
“Those bodies completed their own independent investigations and found the individuals liable. These findings resulted in their ban from participating in the banking industry for life.
“This concludes the Civil actions in this matter, Central Bank has no other comment other than to refer any party to the attached Final Decision of the Federal Reserve Board.”
The press release from the Federal Reserve Board which includes supporting documents can be viewed here.