Former Westchester banker Biagio Maffettone agreed to a $150,000 fine and a ban on working for a federally insured bank, credit union or depository institution.
Maffettone had received $52,023 in bribes from September 2017 to October 2018, according to an administrative law complaint filed last year by the US Office of the Comptroller of the Currency, while working as a home loan manager for Citizens Bank in Westchester.
The federal agency alleged that his actions were part of a pattern of misconduct, involved personal dishonesty and demonstrated disregard for the safety or soundness of the bank.
Maffettone, formerly of Eastchester, agreed to the sanctions on July 18 and the OCC released the consent order on August 18.
He denied any wrongdoing last year in his formal response to the charges. By signing the consent order, he neither admitted nor denied the allegations, but consented to the sanctions “in the interests of cooperation and to avoid costs associated with future administrative and legal proceedings.”
When Citizens Bank hired Maffettone in 2015, he oversaw loans referred by a major real estate company with offices in Chappaqua and Katonah.
In 2017, he was promoted to oversee loan officers, and in this position he was no longer paid commissions and had to relinquish control of references from the real estate company.
But Maffettone allegedly told a loan officer not to pursue loan referrals to Katonah that he considered part of his own business portfolio, and he demanded half the commission from another loan officer who managed loans to Chappaqua and Scarsdale.
The second loan officer reluctantly agreed to the bribe arrangement, according to the OCC, but later reported the scheme to supervisors.
Maffettone resigned the day before he met with bank investigators.
He argued in his response to the OCC’s charges that commission splitting is standard practice in the industry and that his conduct caused no harm to the bank or the bank’s customers.
The consent order allows him to resume his banking activities if the OCC and a new institution give him written permission.
After leaving Citizens Bank in 2018, Maffettone went to work as a sales manager for RealFi Home Funding Corp. in White Plains, according to his LinkedIn profile. He left that role in July to work as sales manager in Westchester for Meadowbrook Financial Mortgage Bankers Corp.