An American Savings Bank executive has resigned amid questions about his role in an alleged cover-up of fraud cases at the bank.

Abel Malczon, American Savings' senior vice president of operations, stepped down last week after 23 years with the company, said Dawn Dunbar, American Savings' spokeswoman.

Dunbar declined to give a reason for Malczon's departure, saying it was a personnel matter. Malczon could not be reached for comment.

The departure comes a year after a 92-year-old Hawai'i Kai customer, Ada Lim, sued American Savings. Lim alleged in an Aug. 2, 2006 lawsuit that an employee at the bank's Hawai'i Kai branch defrauded her of more than $600,000 and that the bank tried to cover up the alleged theft.

A separate suit also filed on Aug. 2, 2006 by the bank's former security director, Bert Corniel, charged that American Savings tried to cover up the Lim case and retaliated against him after he reported the alleged theft to federal authorities.

American Savings settled the lawsuits by paying Lim and Corniel more than $1 million each, but the company still faces a federal investigation into the alleged cover-up.

American Savings has denied that it tried to conceal fraud. In an Aug. 16, 2006 written statement, American Savings Chief Executive Officer Constance Lau said the bank "did not in any way, shape or form cover up anything" and that allegations by Corniel were "unfounded."

Malczon has served as the bank's senior vice president of operations since 2000. He was Corniel's supervisor and headed all of the bank's procurement, contracting, facilities management and security functions.

According to court documents filed in Corniel's lawsuit, Malczon rewrote an in-house report last year on the Lim case.

An initial report by Corniel was 150 words long and provided a detailed summary of the Lim case for bank officials. Malczon reduced Corniel's report to 65 words, taking out the part about a bank employee allegedly taking money from Lim.

The shortened version was submitted to the bank's disclosure committee, which reviews cases of possible fraud.

Founded in 1925, American Savings is the state's third-largest financial institution with $6.8 billion in assets and about 1,400 employees.

Malczon's resignation comes several weeks after American Savings announced the appointment of South Carolina banking executive Timothy Schools as its new chief operating officer.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.