PROVIDENCE – The Federal Deposit Insurance Corporation seeks to ban three Rhode Island financial executives from ever working in the banking industry again.
In a 49-page complaint filed in FDIC’s administrative court on April 7, the agency alleges that Robert S. Catanzaro, the 89-year-old founder and CEO of Independence Bank of East Greenwich, and Danielle M. Desrosiers, the bank’s former executive vice president, engaged in a pattern of “personal dishonesty” that put the soundness of the financial institution in peril.
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The agency also claims that John C. Ponte, of Ponte Investments LLC, violated regulations and recklessly engaged in unsafe or unsound practices that “unjustly enriched” himself in connection with Independence Bank. Ponte Investments also operates under the name Greenwich Business Capital LLC.
Ponte’s actions – which involved hiding risky bridge loans – allegedly caused the U.S. Small Business Administration to sustain $8.8 million in estimated losses, according to the FDIC.
The FDIC complaint seeks a $400,000 civil penalty from Catanzaro, $128,000 from Desrosiers, and $74,000 from Ponte.
Cantanzaro, Desrosiers and Ponte each deny any wrongdoing.
Independence Bank is a privately held community bank with $35 million in assets. It was founded in 2003 by Catanzaro, and has been largely controlled by his family. His son, Robert A. Catanzaro, served as the institution’s president until 2018.
According to Independence Bank President and Chief Operating Officer Heather Marshall, “the bank is not party to the FDIC’s allegations” and is financially sound. “We have a 52% Tier 1 capital ratio. We have excellent liquidity ratios. The bank’s balance sheet speaks for itself. There is no danger to the soundness of the bank.”
Independence has been operating under a consent order since July 2019.
Ponte previously was reprimanded by the Federal Trade Commission in 2022. The FTC then charged Ponte with misleading small businesses into thinking Ponte Investments LLC had an affiliation with the U.S. Small Business Administration and could offer access to coronavirus relief programs administered by the agency.
FDIC spokesman Brian Sullivan said the agency would not offer any comment on the matter or say whether the investigation into the Rhode Island banking executives were part of a larger probe.
Marshall said Catanzaro would “vigorously defend” himself from the allegations.
Ponte, now CEO of Greenwich Business Capital LLC, called the allegations “inaccurate and unfounded.”
In a statement, Ponte said the charges “are the result of an organized effort by Independence Bank’s former senior management to deflect its failure to comply with certain banking guidelines and procedures. The bank’s objective was to scapegoat me for its lack of sound lending practices, as well as to cover up its lack of adherence to well-established standards of practice in its SBA loan program, and failure to report accurate information to the FDIC.”
Desrosiers, in a statement, claimed that “various senior members” of Independence’s management were trying to “deflect responsibility.”
The accused have 20 days to respond to the FDIC complaint.
Sam Wood is a PBN staff writer. He can be reached at wood@pbn.com
