WASHINGTON — Two Denver bankers could be banned from the industry and fined as much as $2 million for prompting the now-defunct Professional Bank to make improper affiliate and insider transactions, the Federal Reserve Board announced Monday.

A public administrative hearing is scheduled for April 2 to determine whether Oren L. Benton and Edward D. Scott should be penalized. Mr. Benton was the sole shareholder and a director of the Denver bank. Mr. Scott was its executive vice president and a director. Mr. Benton faces a $1.25 million fine, and Mr. Scott a $75,000 fine.

The Fed has alleged Mr. Benton and Mr. Scott had violated several laws and engaged in unsound banking practices by allowing Professional Bank to make loans to friends and relatives of Mr. Benton that were then improperly diverted to bank affiliates. The agency said that Mr. Scott ignored the bank counsel’s advice and did not follow due diligence, and that the bank suffered $3 million of losses and other damages as a result.

The hearing will be held in the U.S. Tax Court in Denver.

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