The Federal Reserve Board fined Ghaith R. Pharon $37 million on Tuesday for his role in the Bank of Credit and Commerce International scandal.

In its decision, the Fed said Mr. Pharon broke the law when he acted as a "secret nominee" to acquire Independence Bank of Encino, Calif., in 1985 for the Bank of Credit and Commerce. Independence failed in 1992.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.