WASHINGTON, D.C. — Three executives of the former Colorado Capital Bank that was shut down by regulators in 2011 have been barred from the banking industry, and two will pay monetary penalties, according to a report released Friday by the Federal Deposit Insurance Corp.
Colorado Springs-based Colorado Capital Bank operated a branch bank in Boulder from January 2007 until it was shut down for lack of capital, and its assets and deposits were sold to First Citizens Bank & Trust Co. based in Raleigh N.C.
The FDIC said Friday that Colorado Capital Bank co-founder and chief executive John Marshall Davis, vice chairman Fred Harvey Eller and branch bank vice president Randal Earle Garman no longer can conduct the affairs of any financial institution. In its order, the FDIC, without listing specifics, said the three executives “violated laws and regulations, engaged or participated in unsafe or unsound banking practices, and breached fiduciary duties.”
Eller and Davis also agreed to pay $35,000 and $25,000, respectively, to the Treasury for the alleged violations.