Bank's Ex-Officer Accepts Penalty In Connection with Bond Sales
WASHINGTON - A former bank officer who allegedly told municipal bond customers that their investments were guaranteed against losses has consented to sanctions without admitting or denying any wrongdoing.
James R. Wartinbee Sr., a former senior vice president at First Bank in Milwaukee, agreed to a 12-month suspension from association with any municipal or government securities dealer, according to the Office of the Comptroller of the Currency.
No Actual Losses Claimed
Mr. Wartinbee's suspension follows OCC allegations that he violated securities laws from 1986 to 1989.
According to the OCC, Mr. Wartinbee promised some customers that his bank would repurchase - at purchase price - any securities it sold to them. The arrangement obligated the bank to cover any market depreciation in the securities, the OCC said.
The bank did not lose money nor did it receive revenues from commissions on the transactions, the OCC said.
Mr. Wartinbee retired from the bank in 1989. He would have to pass a qualifying examination, after the suspension, before becoming reassociated with a municipal or government securities dealer.