Experience level: 
Alma D. Hales

Fire and Fraud at Enloe State Bank

Enloe State Bank (ESB) was a small community bank in Cooper, Texas. The bank was closed by the Texas Department of Banking in 2019 after the bank president set the conference room on fire. Investigations revealed significant fraudulent activity by the bank’s top management. The case details the fraud perpetrated by Anita Moody, Enloe’s President, the failure by ESB’s Board of Directors to implement an appropriate internal control system and a suitable auditing program, and raises questions regarding the effectiveness of safety and soundness examinations.