The Federal Reserve Board and the Federal Deposit Insurance Corp. announced a joint enforcement order Thursday against Charles Kushner, the owner of the $622 million-asset NorCrown Bank in Livingston, N.J.
Under the terms of the 49-page order, Mr. Kushner must pay a $12.5 million fine and agree to a ban on any future involvement in the affairs of a financial institution or holding company.
The regulators maintain that Mr. Kushner - who was convicted last year of tax fraud and illegal campaign contribution charges - violated the Change in Bank Control Act, the Bank Holding Company Act, or both by transferring his NorCrown shares to a holding company, NorCrown Trust, without first obtaining permission from the Federal Reserve.
Mr. Kushner stopped playing any role in NorCrown's management last year, shortly before the bank agreed to sell itself to Valley National Bancorp of Wayne, N.J., for $141 million. The enforcement order against Mr. Kushner will not affect the deal, which is expected to close this quarter, a Valley National spokeswoman said Thursday.
