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Sterling Bancorp, Inc. Plea Agreement with DOJ Receives Final Court Approval
Rhea-AI Impact
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Rhea-AI Sentiment
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Rhea-AI Summary
Sterling Bancorp, Inc. has pleaded guilty to one count of securities fraud and has been ordered to pay $27.2 million in restitution. The company will also enhance its compliance program and provide periodic reports to the DOJ.
Positive
Sterling Bancorp, Inc. has resolved its securities fraud case with the DOJ, avoiding further prosecution.
The restitution amount of $27.2 million will benefit non-insider victim shareholders.
Negative
None.
SOUTHFIELD, Mich.--(BUSINESS WIRE)--
Sterling Bancorp, Inc. (NASDAQ: SBT) (the “Company”), the holding company of Sterling Bank and Trust, F.S.B. (the “Bank”), today announced that the United States District Court for the Eastern District of Michigan approved the Plea Agreement previously entered into by the Company with the U.S. Department of Justice, Criminal Division, Fraud Section (the “DOJ”). Under the Plea Agreement, the Company pleaded guilty to one count of securities fraud primarily relating to disclosures with respect to the Company’s former Advantage Loan Program contained in the Company’s 2017 IPO Registration Statement and its immediately following Annual Reports on Form 10-K filed in March 2018 and March 2019. Consistent with the Plea Agreement, the sentence issued by the court requires the Company to pay $27.2 million in restitution for the benefit of non-insider victim shareholders; further enhance its compliance program and internal controls with respect to securities law compliance; and provide periodic reports to the DOJ with respect to compliance matters. The restitution amount will be administered by a special master to be appointed by the court. This resolution releases the Company, as well as the Bank, from further prosecution for securities fraud and underlying mortgage fraud in the Advantage Loan Program. The Company and the DOJ entered into the Plea Agreement on March 15, 2023, resolving the DOJ’s investigation focused on the Bank’s Advantage Loan Program and related issues.
About Sterling Bancorp, Inc.
Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City. Sterling offers a range of loan products as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. For additional information, please visit the Company’s website at http://www.sterlingbank.com.
Sterling Bancorp, Inc.
Karen Knott
Executive Vice President and Chief Financial Officer
(248) 359-6624
kzaborney@sterlingbank.com
Source: Sterling Bancorp, Inc.
FAQ
What is the Plea Agreement between Sterling Bancorp, Inc. and the DOJ?
The Plea Agreement is a resolution to the securities fraud case against Sterling Bancorp, Inc. It requires the company to pay $27.2 million in restitution and enhance its compliance program.
Who will benefit from the restitution amount?
The restitution amount of $27.2 million will benefit non-insider victim shareholders.
sterling bank & trust was originally chartered in 1984 as sterling savings and loan association with a focus on residential mortgage lending in the neighborhoods we serve. in 1990, our growth led to the development of the commercial real estate lending division. in 1992, we became sterling bank and trust, fsb, with the addition of the trust division. a key part of bay area neighborhoods and now los angeles, sterling has 18 neighborhood branches in the san francisco bay area, and one branch in alhambra, california. we continue to expand, and anticipate branches opening in cupertino and irvine, california in the near future. our mission is to create exceptional value for customers, employees, investors and the community through innovative and creative products, services and activities; and to profitably grow as an independent, national company by providing superior financial solutions that exceed customer expectations.
