Fed: Federal Reserve Board issues enforcement actions with former employee of Northstar Bank, former employee of American Express Travel Related Services Company, Inc., and former employee of Regions Bank

• The actions involve former employees of Northstar Bank, American Express Travel Related Services Company, Inc., and Regions Bank.
• The enforcement actions address misappropriation of customer funds, misapplication of funds with conflicts of interest, and check fraud.

The Federal Reserve Board announced on September 18, 2026, that it executed consent prohibition orders against three individuals: Charles Alan Wright (Northstar Bank), Stephanie K. Hudders (American Express Travel Related Services Company, Inc.), and Elvisha White (Regions Bank). These actions were taken in response to misappropriation of customer funds, misapplication of funds with conflicts of interest, and check fraud.

Each individual is now subject to a prohibition order, barring them from participating in the affairs of any insured depository institution. The enforcement actions are documented in three separate attachments, which detail the specific violations and the resulting prohibitions.

• Screen current and prospective employees against the Fed's prohibition orders, including those named in the September 18, 2026 enforcement actions.
• Review internal controls for misappropriation and misapplication of funds, referencing the cases of Charles Alan Wright and Stephanie K. Hudders.
• Update fraud detection protocols to address check fraud typologies highlighted by the enforcement action against Elvisha White.

These enforcement actions underscore the importance of robust internal controls and employee screening in preventing financial crimes such as misappropriation, misapplication of funds, and check fraud. Compliance officers must ensure that individuals subject to prohibition orders are not employed in positions of trust and that controls are in place to detect and prevent similar misconduct. The Fed's actions serve as a reminder of regulatory expectations and the consequences of failing to uphold AML/CFT standards within financial institutions.