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Former Kentucky bank CEO banned by Federal Reserve

BENTON, Ky. — Carolyn Flynn, the former CEO of Kentucky-based Community Financial Services Bank (CFSB), approved a loan of more than $90,000 to a family member and accessed customer information without authorization, according to a regulatory filing from the Federal Reserve.

The breaches – which amounted to “unsafe and unsound ending and customer information practices” – occurred between March 2018 and February 2020. While the loan was repaid in full, CFSB incurred a financial loss of approximately $1,000 in legal fees.

Flynn has paid restitution to the bank for this loss and retired from her role as CEO and chair at the end of March 2020. She has been banned from “participating in any manner in the conduct of the affairs” of any depository institution or holding company. She is also prohibited from having any voting rights at any US bank or depository institution.

According to the regulatory notice, Flynn has accepted the ban without admitting or denying any allegation.