Group agrees to $175,000 penalty; leader to be banned from banking
WASHINGTON (AP) _ A group of people charged with acquiring more than 10 percent of the stock of four thrift institutions without notifying regulators has agreed to pay a $175,000 civil penalty.
The group also will make restitution of $223,650 and its leader, Prem Sahai of Webster City, Iowa, has agreed to be banned from the banking industry, the U.S. Office of Thrift Supervision said Wednesday.
Without admitting or denying the agency’s charges of violating the Change in Bank Control Act, all members of the group also consented to refrain from future violations.
The group is comprised of Sahai, 10 relatives and friends of his, and Webster City Medical Service, which is owned by two group members.
The institutions they invested in are Mid-Iowa Savings Bank of Newton, Iowa; Kirksville Federal Savings Bank of Kirksville, Mo.; Home Federal Savings Bank of Sioux Falls, Iowa, and First Federal Savings Bank of Moline, Ill.
The OTS said the group is required to pay restitution of its illegally obtained profits from the stock: $221,000 to Mid-Iowa Financial Corp., the holding company for Mid-Iowa Savings Bank, and $2,650 to Firstar Corp., the successor to First Federal Savings Bank of Moline’s holding company.
In addition to Prem Sahai, the other group members are his wife, Urmila Sahai, and their three children, Subhash Sahai, Anil Sahai and Neena Gupta; Sushma Sahai, wife of Subhash; Nutan Sahai, wife of Anil; as well as Sanjay Chatrath, Mary Clausen, Priti Goel and Arun Kalra. Webster City Medical Service is owned by Subhash and Anil Sahai.