The Los Alamos National Bank and its parent company, Trinity Capital Corporation, have agreed to pay $1.5 million in fines. In exchange, the Securities and Exchange Commissio will drop the charges it levied against the bank and Trinity for accounting fraud.
“Without admitting or denying the SEC’s findings, Trinity agreed to provide ongoing cooperation and to pay a $1.5 million penalty, which takes into account the company’s significant remedial measures and cooperation during the investigation, The SEC said in a written statement.
According to the SEC, Trinity underreported the net losses to its shareholders by $30.5 million. SEC officials said the company reported its 2011 income as $4.9 million, when actually the bank suffered a $25.6 million loss.
In its investigation of the bank and Trinity Capital, the SEC directly blamed William Enloe, Trinity Capital’s CEO at the time, former chief credit officer Jill Cook and former lending officer Mark Pierce.
The SEC’s complaint also blames Trinity’s former CFO Daniel Bartholomew and vice president of internal audit Karl Hjelvik for not installing proper internal auditing controls and failing “to ensure the bank’s books and records were reasonably accurate.”