Sterling National Bank Complaint Prompts Investigation By NYDFS

New Investigations By Federal Agencies & NYDFS Could Shatter Sterling National Bank's Merger With Hudson Valley Bank

Last week, I wrote about how the FDIC and the U.S. Treasury's Office of the Comptroller of the Currency (OCC) have launched investigations into the treatment of Sterling National Bank customer Bill Youngblood.

On Friday, MFI-Miami confirmed that not only are the FDIC and the OCC investigating Sterling National Bank's treatment of Bill Youngblood but now the New York Department of Financial Services (NYDFS) has launched its own investigation into the mob style treatment of Bill Youngblood.

The complaints filed with the FDIC, OCC and NYDFS allege that an employee of Provident Bank (which has since merged with Sterling National Bank) under the supervision of Assistant Vice President, Dino Saracino improperly withdrew money out of the corporate business accounts of Bill Youngblood and then applied the funds to his residential mortgage without his knowledge or consent. This action by Sterling National Bank caused dozens of checks written by Youngblood to bounce costing Youngblood thousands of dollars in NSF fees. It appears Sterling National Bank did this for the sole purpose of reaping thousands of dollars in NSF fees from Youngblood.

Read more here: Sterling National Bank Complaint Prompts Investigation By NYDFS