Former St. Tammany banker fined by FDIC

The Federal Deposit Insurance Corp. has fined former Central Progressive Bank executive Richard S. “Dickie” Blossman Jr. $75,000 and has moved to prevent him from participating in the affairs of any other bank. Regulators say Blossman recklessly disregarded banking regulations and used the family-owned Northshore financial institution for his own personal enrichment. Blossman, a former chairman, chief executive and director of the Lacombe bank, which has a branch in Denham Springs, “violated laws and regulations, engaged or participated in unsafe or unsound banking practices, or committed or engaged in acts, omissions or practices which constitute breaches of his fiduciary duties to the Bank,” according to an FDIC notice. The notice also says “that (Blossman) received a benefit as a result of such violations, practices and breaches of fiduciary duties; and that such violations, practices and breaches of fiduciary duties demonstrate (Blossman’s) personal dishonesty or willful or continuing disregard for the safety or soundness of the Bank” between 2005 and 2009. It’s not the first time that Blossman, a member of the prominent banking and political family in St. Tammany Parish, has been in trouble with bank regulators. In January 2009, while Blossman was the top executive at Central Progressive, the FDIC cited the bank for “unsafe or unsound” practices.