Hours after the settlement was announced, the U.S. Department of Justice announced a $100 million settlement with the Mt.
Sinai Bank, a federally chartered institution that was one of the largest banks in the country at the time.
In a statement Thursday, the DOJ said it was “pleased that this matter has been resolved,” adding that the bank “reaffirmed its commitment to ensure that it takes every measure to maintain its high standards of accountability and compliance.”
“We believe the settlement will help to ensure the integrity and integrity of the MTSA Bank, as well as the integrity of all of our customers and employees,” said Mt.
Sophia CEO Chris Ebersole.
The bank has since paid more than $100,000 to more than 3,000 customers and $60,000 in fines, according to the DOJ.
Simeon is also in the process of closing a $4.5 million settlement to settle claims that it misused customer information and misled customers about its account status.
The settlement, the second in a three-month period, comes after regulators said the bank failed to properly protect customer data and information provided to regulators.
In August, the bank was ordered to pay $15 million to more a $1.3 million penalty for the fraudulent use of customer information.
Mt Simeo also agreed to pay a $250 million penalty to settle civil claims stemming from its failure to notify customers about potential fraud.
In October, the Department of Education and the Federal Trade Commission agreed to settle a class action lawsuit alleging that the Mt Sama Bank improperly sold information about customers’ credit ratings and student loan balances.
The investigation by the DOJ, the Federal Reserve, and the Consumer Financial Protection Bureau into the Mts Simeons practices led to the settlement.