Federal Reserve Slaps Bank Insider With Industry Ban After He Was Convicted for Stealing $26,428 From His Billion-Dollar Employer

The US Federal Reserve Board of Governors is taking action against a former employee at a bank branch in North Dakota who stole tens of thousands of dollars.

The Federal Reserve board says it is issuing an order of prohibition against Nicholas Leroy Klug, after he stole $26,428 from his former employee, the Dacotah Bank, over the course of 11 months.

Says the Federal Reserve board,

“On April 22nd, 2025, following Klug’s guilty plea, a North Dakota court convicted Klug of theft of property in violation of North Dakota law for misappropriating $26,428 from the bank between December 2023 and November 2024 while Klug was employed as the market retail lead of a bank branch…

Klug’s conduct constituted violations of law or regulation, unsafe or unsound banking practices, breaches of fiduciary duty, and involved his personal dishonesty and his willful and continuing disregard for the safety and soundness of the bank.”

The court sentenced Klug to nearly a year in prison and required him to return the stolen funds to the bank.

The regulator’s order bans Klug from working in the banking industry. The order says Klug consented to the ban as part of his plea agreement.

Dacotah Bank is the 258th largest US bank with $4.6 billion in assets.

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