Bank fined $1.5M for not flagging suspicious activity linked to Pa. juvenile justice scandal


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DUNMORE, Pennsylvania — A bank in northeastern Pennsylvania has been fined $1.5 million for failing to file suspicious activity reports linked to a juvenile justice scandal.

U.S. Treasury Department investigators announced the penalty Friday against First National Community Bank of Dunmore.

Authorities say the bank should have flagged transactions involving then-Luzerne County Judge Michael Conahan beginning in 2005.

Prosecutors later alleged Conahan and a colleague accepted more than $2 million in illegal payments from the builder of a youth detention center. Both judges are now incarcerated.

Authorities say the bank reported suspicious activity only after Conahan's first guilty plea in 2009. Conahan had sat on the bank's board of directors.

A bank spokesman says it's speculation to suggest law enforcement would have uncovered the kickback scheme earlier if reports had been filed.

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