The Federal Reserve Board has banned from banking Michael Wachs, a former managing director of Chase Manhattan Corp. and Chase Securities Inc.
The Fed, in a Feb. 6 order, accused Mr. Wachs of engaging in a fraudulent scheme to purchase Chase assets and then immediately resell them for a profit. Mr. Wachs did not admit any wrongdoing but agreed not to work for a bank or serve on a bank board. A Chase spokesman declined to comment.
Also last week, the Fed banned two other officials from banking. Michael A. Lindhal, a former officer at Heartland Bank, Croton, Ohio, was accused of participating in fraudulent nominee loan transactions and of the unauthorized use of customer assets. Stephen R. Koury, a former employee at First Western Trust Services Co., New Castle, Pa., was charged with misappropriating trust funds. Neither admitted any wrongdoing.