Fed Bars Two Former Bank Employees Over Misuse of Customer Funds
The Federal Reserve Board on Thursday, August 20, 2026, announced consent prohibition orders against two former bank employees, barring them from working in the banking industry after findings tied to the misappropriation of customer funds.
The two orders name Stephanie R. Kilbert, a former employee of Regions Bank in Birmingham, Alabama, and Crystal A. Wykle, a former employee of United Community Bank in Greenville, South Carolina. Both actions cite the same underlying issue: misappropriation of customer funds. The Fed’s press release does not disclose the amounts involved, the time period of the conduct, or how it was discovered.
What a Consent Prohibition Order Actually Does
A prohibition order issued by the Federal Reserve Board bars an individual from participating in the affairs of any federally insured depository institution. Because these are described as consent orders, the individuals agreed to the terms without necessarily admitting or denying the underlying findings, which is standard practice in these types of federal banking enforcement matters. The practical effect is that Kilbert and Wykle can no longer work for a bank regulated under the federal banking system, whether at the institution named in the order or elsewhere in the industry.
The Fed’s release does not indicate whether either individual faces separate criminal charges or civil litigation. The action announced here is a banking-industry employment bar, not a criminal conviction or a civil damages ruling.
Who Is Affected by This Action
Customers of Regions Bank and United Community Bank are the most directly connected group, since both employees worked at these institutions before the actions were finalized. The release does not say whether specific customer accounts were affected, how many customers may have been involved, or whether either bank has made customers whole. It also does not name a dollar figure tied to any misappropriated funds.
For everyone else, the release is a reminder that federal banking regulators track individual misconduct inside insured banks and have the authority to permanently bar people from the industry when misappropriation of customer funds is found, regardless of the size of the institution or the specific city where it occurred.
What Customers of These Banks Can Check
The Federal Reserve’s release does not direct customers to take any particular action, and this article does not offer personalized guidance. What the release does confirm is that additional Federal Reserve enforcement actions, beyond these two, can be searched through the Board’s public enforcement actions database, linked in the original press release. That search tool lists prohibition orders, cease-and-desist orders, and other formal actions taken against banks and individuals supervised by the Federal Reserve System.
Anyone who banks with Regions Bank or United Community Bank and has questions about a specific account should rely on statements, transaction records, and direct contact with the bank’s customer service channels rather than assumptions drawn from a regulatory press release, since the release itself contains no account-level detail.
How These Orders Fit Into Broader Bank Oversight
The Federal Reserve Board oversees state member banks and bank holding companies as part of its supervisory role, described on its site as part of “Supervision & Regulation” of banks ranging from community institutions to globally systemic firms. Enforcement actions against individual employees, like the ones announced here, are one tool the Board uses alongside actions against institutions themselves. The release states that media inquiries about this specific announcement can be directed to the Board’s press office by email or by calling 202-452-2955.
Next Step for Readers
Anyone who wants to see the full text of either consent order, including any additional detail the Board disclosed beyond the press release summary, can review Attachment 1 and Attachment 2 referenced in the Federal Reserve’s original announcement, or search the Board’s enforcement actions database directly for filings tied to Regions Bank or United Community Bank.
This is a News-lane report. It was drafted automatically from the linked primary source and published after automated checks that every figure appears in that source. It is summarised regulatory news, not evergreen guidance and not financial advice. See our AI content disclosure and disclaimer.
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