DeNaples' return to FNCB chairmanship may take longer than his return to Mount Airy
Published: July 2, 2009
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share thisHaving returned triumphantly to Mount Airy Casino Resort last week, Dunmore businessman Louis DeNaples may push for his return to the chairmanship of First National Community Bancorp Inc.
Mr. DeNaples started a voluntary leave of absence as director and chairman of the board from the bank in January 2008 shortly after being charged by the Dauphin County district attorney with perjury. Prosecutors alleged he lied to the Pennsylvania Gaming Control Board in his attempt to secure the license to allow gambling at Mount Airy Casino Resort.
He was banned by the Office of the Comptroller of the Currency from serving as a bank officer soon after until disposition of the case. The charges were dropped in April, and his gaming license was reinstated June 3.
But his return to head of the bank's table may take longer than his return to the casino's table. That may be based on when the case is declared closed.
A reading of Mr. DeNaples' agreement with Dauphin County prosecutor Edward Marsico against the federal regulations suggests Mr. DeNaples may have to stay away from banking business for up to two years, unless he challenges the ban with the Office of the Comptroller of the Currency.
While the agreement resulted in Mr. Marsico's dropping the perjury charges, it allows him to reinstate the charges should Mr. DeNaples violate terms of the deal. Mr. DeNaples' attorneys have to file reports that show he is complying with the agreement until the terms are met, or for two years.
"As soon as the conditions are met, I will consider the agreement fulfilled," Mr. Marsico said. "So far, Mr. DeNaples and his attorneys have complied fully with all our requests."
Federal regulations say a bank official in a "pretrial diversion," which is an agreement to suspend prosecution up to two years while the defendant completes a probationary period, can be banned from the banking industry.
It is unlikely Mr. DeNaples will let the OCC prohibition stand. With a past marred by legal problems and alleged organized crime connections, Mr. DeNaples often pointed to his vetting by federal banking regulators as a vindication. FNCB's largest shareholder, Mr. DeNaples has been a director at the bank since 1972, and remains listed as a director on a leave of absence.
Theodore J. Chylack, an attorney for Mr. DeNaples, declined to comment when asked about Mr. DeNaples' next move.
Gilbert T. Schwartz, a Washington, D.C.-based banking law expert, said without a conviction or guilty plea as part of the agreement, Mr. DeNaples may argue the agreement does not qualify as "pretrial diversion" under state law.
Even Mr. Marsico hedged when asked if the DeNaples agreement constitutes a pretrial diversion, calling it a "gray area."
Or, Mr. DeNaples could argue before regulators that facts in the case merit a waiver and he should be able to reclaim his seat immediately, Mr. Schwartz said. OCC spokesman Kevin Mukri demurred when asked about specifics and how they may play out. Each case is evaluated individually and nothing happens automatically, he said.
"We would review an action, look for compliance and other issues," he said. "Every case is different."
Contact the writer: dfalchek@timesshamrock.com
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