FBI arrests CEO of Evolve Bank & Trust

According to reports, the FBI executed an arrest warrant Thursday morning at Evolve Bank & Trust’s headquarters, an agency spokesperson confirmed to Jason Mikula of Fintech Biz Weekly.

A source close to the bank said its recently appointed CEO, Bob Hartheimer — nicknamed “Boyscout Bob” — was escorted from the building by federal agents during the operation. He was just named CEO in August.

Sources reported That this may be a “personal matter”, and not directly related to the bank itself.

Editor’s note: This is a developing story and will be updated as new information becomes available. Evolve Bank & Trust did not immediately respond to requests for comment.

Background on Evolve Bank & Trust

The development of banking and trustfounded in 1925 and known for its partnerships with fintech companies, was under Federal oversight since mid-2024 After regulators pointed out weaknesses in anti-money laundering and risk management programs. The Federal Reserve issued an executive action requiring the Arkansas-based bank to enhance compliance and improve oversight of its technology partners.

These issues came in the wake of the collapse of Synapse Financial Technologies, a fintech intermediary that connected app-based platforms like Juno and Yotta to traditional banks including Evolve.

It was Bob Hartheimer He was appointed CEO of the bank in AugustFollowing the retirement of former CEO Scott Stafford.

Relationships with synapse breakdown

While sources suggest this may be a personal matter, it doesn’t look good for a bank mired in problems over the past several years.

Evolve Bank & Trust faces continued scrutiny over its role in the fallout from the Synapse Financial Technologies bankruptcy. Synapse, a fintech middleware that connected banking partners like Evolve to consumer-facing financial applications, collapsed in April 2024, leaving tens of thousands of end users unable to access their deposits.

Federal regulatory agencies and Plaintiffs in the class action lawsuit They accused Evolve of inadequate oversight and poor reconciliation practices that contributed to the loss of an estimated $65 million to $95 million in funds. The bank denied any wrongdoing, pointing to what it called “material irregularities” in Synapse’s books, and pledged to cooperate with regulators to identify and return customer funds.

It also comes a year after Evolve was also hit by a ransomware attack. The bank is finished Paid a settlement of $11.9 million Because of the attack that affected approximately 18 million people.

While the FBI has not confirmed details of the arrest, court documents are not yet available.

What happens next

The Federal Reserve’s enforcement order remains in effect, requiring Evolve to enhance due diligence on its fintech partners and strengthen consumer protections. Lawmakers in Congress(PDF) They also pressured federal banking regulators to explain how oversight failed during Synapse’s collapse.

With the FBI now involved, Evolve faces its most serious test yet (both legally and reputationally) as its CEO of just three months is now on administrative leave.

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