Each depositor insured to at least $250,000 per insured bank



Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders




FDIC Enforcement Decisions and Orders

ED&O Home | Search Form | Text Search | ED&O Help



{{4-1-90 p.C-140.1}}
   [10,028A] In the Matter of John W. Kofoed, Docket No. FDIC-89-211e (12-1-89).

   Respondent prohibited from further participation in affairs of, or from the exercise of voting rights in, Bank or any insured bank.

   [.1] Prohibition, Removal, or Suspension—Prohibition—Participation in Affairs of Bank—Exercise of Voting Rights
   [.2] Prohibition, Removal, or Suspension—Prohibition—Service As a Director in Any Insured Bank
   [.3] Prohibition, Removal, or Suspension—Prohibited—Exercise of Voting Rights

In the Matter of
JOHN W. KOFOED, Individually, and as
a director, officer and person participating
in the conduct of the affairs of
WEST BRANCH STATE BANK
WEST BRANCH, IOWA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   John W. Kofoed ("Respondent"), having been advised of his right to a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the unsafe or unsound banking practices and violations of law, rule or regulation demonstrating willful or continuing disregard for safety and soundness alleged to have been committed by Respondent individually and in his capacity as a director, officer and person participating in the conduct of the affairs of West Branch State Bank, West Branch, Iowa ("Bank"), resulting in substantial financial loss or other damage to the Bank and serious prejudice to the interests of the Bank's depositors, and having been further advised of his right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(e), and Part 308 of the FDIC's Rules of Practice and Procedures, 12 C.F.R. Part 308, waived those rights, and entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, dated February 15, 1989, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices and any violations of law, rule or regulation, Respondent consented to the issuance of an ORDER OR PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that:

       (i) Respondent had engaged or participated in unsafe or unsound banking practices and violations of law, rule or regulation as a director and officer of the Bank;
       (ii) The Bank suffered substantial financial loss or other damage and the interests of the Bank's depositors were seriously prejudiced by reason of such practices and violations; and
       (iii) Such practices and violations demonstrated Respondent's willful or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such practices and violations demonstrated Respondent's unfitness to continue to serve as a director and officer of the Bank, or as a director or officer or person participating in the conduct of the affairs of any bank insured by the FDIC. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   [.1] 1. John W. Kofoed is hereby prohibited from participating in any manner in the conduct of the affairs of the Bank, or directly or indirectly soliciting or procuring, or transferring or attempting to transfer, or voting or attempting to vote, any proxies, consents or authorizations in respect of any voting rights in the Bank.
{{4-1-90 p.C-140.2}}
   [.2] 2. John W. Kofoed is hereby prohibited from serving or acting as a director, officer, or employee of, or participating in any manner in the conduct of the affairs of, any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. §1813(q).

   [.3] 3. John W. Kofoed is hereby prohibited from voting for a director of any bank insured by the FDIC without the prior written approval of the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. §1813(q).
   This ORDER shall become effective ten (10) days after the date of its issuance.
   The provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Pursuant to delegated authority.
   Date of Issuance: December 1, 1989
In the Matter of
JOHN W. KOFOED, Individually and as a
director, officer and person participating
in the conduct of the affairs of
WEST BRANCH STATE BANK
WEST BRANCH, IOWA
(Insured State Nonmember Bank)

CERTIFICATION

   The undersigned certifies that he has reviewed the proposed ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") to be issued against the above-named Respondent and is of the opinion that, based upon the information available to the undersigned, the ORDER is not inconsistent with section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(e) (1982), (current version at sections 903 and 904 of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, Pub. L. No. 101-73, §§903 and 904, 103 Stat, 183, 453–459 (1989) (to be codified at 12 U.S.C. §1818 (e)), and effective ten (10) days after issuance will be an order which has become final for purposes of enforcement pursuant to the Act.
   Dated this 15th day of November, 1989.

ED&O Home | Search Form | Text Search | ED&O Help

Last Updated 6/6/2003 legal@fdic.gov