The Federal Reserve Board executed two enforcement actions in the form of consent prohibition orders against former bank employees, citing misconduct involving the diversion of funds. The actions cover Jacob Hilton, a former employee of United Bank in Fairfax, Virginia, for embezzlement of bank funds, and Klaus Koberstein, a former employee of East Cambridge Savings Bank in Cambridge, Massachusetts, for misappropriation of customer funds.
Federal Reserve Board 2026-03-03
Federal Reserve Board issues consent prohibition orders against former United Bank and East Cambridge Savings Bank employees for embezzlement and customer fund misappropriation
The Federal Reserve Board issued consent prohibition orders against Jacob Hilton and Klaus Koberstein, former employees of United Bank and East Cambridge Savings Bank, respectively. Hilton was cited for embezzlement of bank funds, while Koberstein was cited for misappropriation of customer funds.