Frontier State Bank

Name:Frontier State Bank
Full Service Brick and Mortar Office
Main Office of the Bank
Review:1 client review
Location:5100 South I-35 Service Road
Oklahoma City, OK 73129

Oklahoma County
FDIC Cert:#21978

The Bank

Name:Frontier State Bank
Concentration:Commercial Lending Specialization
FDIC Insurance:1975-04-14
Charter Class:Commercial bank, state charter and Fed nonmember, supervised by the FDIC
Total Assets:$494,757,000
Total Deposits:$417,503,000
Total Equity Capital:$71,835,000
Total Domestic Office Deposits:$417,503,000
Net Income:$7,726,000
Quarterly Net Income:$7,726,000
Return on Assets:6%
Quarterly Return on Assets:6%
Return on Equity:44%
Quarterly Return on Equity:44%

Client Review

1 client review of Frontier State Bank scored 1 out of 5.

* Joseph D. McKean Jr. / JD McKean Jr. *
Overall Rating
Interest Rate and Cost
Office Environment & Staff
Waiting Time
Other Services
by KnowYourBanker, Nov. 05, 2011


Does the Present (and Future) Imitate the Past?

It appears that Joseph D. McKean, Jr., M.D., the majority shareholder and chairman of the board of Frontier State Bank (and the majority shareholder and chairman of the board of affiliated Washita State Bank), has a bit of a past, to wit:

A)   "WASHINGTON, D.C. -- An Oklahoma-based emergency physician billing company and its physician founder will pay the United States and 28 states $15 million to resolve allegations of false billings to the Medicare, Medicaid, and TRICARE programs, as well as the Federal Employees Health Benefits Program (FEHBP)."

as reported in the "" webpage.

B)   "This is a civil money penalties proceeding brought by the Federal Deposit Insurance Corporation ("FDIC") against Joseph D. McKean, Jr. ("Respondent"), the chairman of the board of directors of Frontier State Bank, Oklahoma City, Oklahoma ("Bank"), pursuant to its authority under section 8(i) of the Federal Deposit Insurance Act ("FDI Act"), 12 U.S.C. ยง 1818(i), for alleged violations of Regulation O of the Board of Governors of the Federal Reserve System ("Regulation O").

The alleged misconduct includes two types of improper payments, in violation of Regulation O, as discussed by the Administrative Law Judge ...

A hearing was held before Administrative Law Judge Arthur L. Shipe ("ALJ") ... Before entering the courtroom to commence the proceeding, Respondent requested permission to make a video recording of the proceeding.  The ALJ refused, but encouraged Respondent to raise the issue as a preliminary matter.  Instead, Respondent evaded security, brought his camera into the courtroom, and commenced making a video recording of the proceeding.  During the FDIC Enforcement Counsel's opening statement, the ALJ noticed the operation of the video equipment and requested its removal.  Respondent asked for a federal court to rule on the matter, which the ALJ interpreted as a request for a continuance and denied ... After stating, "If the equipment goes, I go," Respondent walked out of the courtroom ... The hearing proceeded without the Respondent.

The ALJ issued a Recommended Decision ... proposing that a $100,000 penalty be assessed against the Respondent.  No exceptions were filed to the ALJ's Recommended Decision ...

Accordingly, the Board, having considered the entire record in this proceeding, taking into account the appropriateness of the penalty with respect to the size of financial resources and good faith of Respondent, the gravity of the violations, and such other matters as justice may require, it is hereby ORDERED that by reason of his multiple and serious violations of regulations, as set forth above, the Respondent is assessed a civil money penalty of $100,000."

as reported in the "" webpage.

C)     "Camp Developer Tangled With the FDIC"

"The developer of a proposed Christian camp near Leadville accepted illegal loans and fees as chairman of an Oklahoma bank, a revelation that should be a warning to local officials, critics contend.  Dr. J.D. McKean Jr. was penalized $100,000 by the Federal Deposit Insurance Corp. for banking violations five years before he was fined $15 million for overbilling Medicare and Medicaid in a more publicized case  ... the bank's directors voted to pay McKean a "consulting fee" of $10,000 per month, an amount that exceeded the salaries of the bank's full-time officers and dwarfed the $500 paid to the other directors, according to court documents.

In addition, McKean accepted or cosigned on more than $400,000 in loans that the FDIC said violated Federal Reserve Board Regulation O. That regulation "prevents the bank from becoming the owner's own personal piggy bank," said FDIC spokesman David Barr.

The board eventually stopped paying the consulting fee and required McKean to pay back $90,000. But in a secret deal cut during the same board meeting and noted in "special minutes" that were not turned over to the FDIC, the board then awarded McKean $110,150 as illegal interest on six of his demand-deposit accounts.

"I find especially egregious his attempted deception of the FDIC in order to continue receiving consulting fees in the form of interest payments," Administrative Law Judge Arthur Shipe wrote."

as reported in the "" webpage.

D)    "Judges Say Background Checks, Oversight Needed to Protect Wards"

"Earlier this year, McKean was appointed by a Tulsa judge as financial guardian for a woman suffering from dementia, records show.  While those involved with the case could not speak on the record, it's likely that attorneys and judges involved had no idea about McKean's past ...

The Justice Department joined a civil lawsuit against McKean and his company that claimed he devised a scheme to bill the government for a higher service than doctors had rendered ... U.S. District Judge Robin Cauthron ruled that the government was entitled to recover damages under the false claims act.  "The court finds it abundantly clear, from the testimony, writings, and videotaped presentations of Dr. McKean, that his intent was to get what he could by fair means or foul," Cauthron states in her ruling."

as reported in the "" webpage.

Makes one wonder of any additional instances not reported to, or prior to the advent of, the internet; as so often said in MNF, you make the call.

* this reviewer has be with this bank for <6 months
* this reviewer had >10 banks before.
* this review was made on Frontier State Bank, Frontier State Bank at Oklahoma City, OK
4 of 5 people found this review helpful. Was this review helpful to you? Yes, No   Report Abuse

0 comment. Add a comment

Banks Nearby

Simmons Bank, Oklahoma City Capitol Hill Branch (1.7 miles)
Full Service Brick and Mortar Office
3131 Shields Boulevard
Oklahoma City, OK 73126
The City National Bank and Trust Company of Lawton, Oklahoma, Santa Fe Branch (2.2 miles)
Full Service Retail Office
100 E I-240 Svc Rd
Oklahoma City, OK 73149
MidFirst Bank, 44th & Western Branch (2.2 miles)
Full Service Brick and Mortar Office
810 Southwest 44
Oklahoma City, OK 73109
Bank of America, Capitol Hill Branch (2.3 miles)
Full Service Brick and Mortar Office
2701 South Harvey Ave
Oklahoma City, OK 73109
First United Bank and Trust Company, Okc Southwestern Branch (2.3 miles)
Full Service Brick and Mortar Office
6000 South Western Avenue
Oklahoma City, OK 73139