Bank exec was improperly tipped off to damning memo: suit

The chief executive of an embattled California bank was improperly tipped off to an internal memo about allegedly questionable money transfers into his personal checking account — by the head of the company’s compliance department, according to explosive new documents filed in a whistleblower lawsuit.

John Tolla — who is still the head of compliance at Axos Financial, known at the time as Bank of Internet — admitted in a deposition that he’d told CEO Greg Garrabrants about a potentially damaging internal memo that detailed how the CEO had allegedly funneled money into his own account and may have avoided paying taxes, according to court documents filed late Wednesday.

The memo, which was written to the board’s audit committee by whistleblower Charles Erhart in January 2015, alleged Garrabrants had allegedly deposited third-party annuity checks into his own personal account, as well as transferred large sums of money from an account under his brother’s name, according to the court documents.

Source: New York Post

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