In the Matter of Eagle Bancorp, Inc. Admin. Proc. File No. 3-20963
Jan. 5, 2023
On August 16, 2022, the Commission instituted and simultaneously settled cease-and-desist proceeding (the “Order”) against Eagle Bancorp, Inc. (“Eagle” or “Respondent”). In the Order, the Commission found that Eagle made material misstatements and omissions about related party loans that Eagle’s principal subsidiary, EagleBank, extended to family trusts affiliated with Eagle’s former Chairman, CEO, and President, Ronald D. Paul (“Paul”), and to other related parties. From March 2015 through April 2018, Eagle failed to include these undisclosed loans in the related party loan balances included in its annual reports and proxy statements filed with the Commission. Eagle and Paul also made false statements regarding the nature of the loans in two press releases.
The Commission ordered the Respondent to pay $2,600,000.00 in disgorgement, $750,493.00 in prejudgment interest, and a $10,000,000.00 civil money penalty, for a total of $13,350,493.00, to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty paid, along with the disgorgement and interest paid, can be distributed to harmed investors (the “Fair Fund”). See the Commission’s Order: Release No. 33-11092.
The Fair Fund includes the $13,350,493.00 paid by the Respondent. The Fair Fund and has been deposited in an interest-bearing account at the U.S. Department of the Treasury, and any interest accrued will be added to the Fair Fund.
On May 17, 2023, the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-97515.
For more information, please contact the Commission:
Office of Distributions