The Federal Reserve Board took action against a former executive at Nano Financial Holdings, Inc. and Nano Banc for fraudulently obtaining loans and grants administered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Specifically, the Federal Reserve fined Anthony R. Gressak III, the former director and former interim CEO of Nano Financial Holdings and Nano Banc $75,000 and prohibited him from future participation in the banking industry.
The Federal Reserve Board also announced that it had prohibited James T. Chung, also a former director of Nano Financial Holdings, Inc. and Nano Banc, from future participation in the banking industry for fraudulently obtaining loans and grants administered under the CARES Act.
“Whereas, from March 2020 to February 2022, Gressak participated in making materially false representations in connection with certain of the applications for these [CARES Act] funds and improperly accepted a portion of the funds for personal expenses,” the Board’s resolution reads.
Without admitting or denying any allegation made or implied by the Board of Governors, Gressak consented to the order.
“Whereas, by affixing his signature hereunder, Gressak has consented to the issuance of this Order by the Board of Governors and has agreed to comply with each and every provision of this Order,” the resolution states.