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FDIC Enforcement Decisions and Orders

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{{4-1-90 p.C-310.2}}
   [10,062B] In the Matter of Robert B. Marx, Docket No. FDIC-90-35e (4-9-90).

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

   [.1] Prohibition, Removal, or Suspension—Prohibition—Participation in Affairs of Any Bank
   [.2] Prohibition, Removal, or Suspension—Prohibition—Exercise of Voting Rights

In the Matter of
ROBERT B. MARX, individually, and as
a director and a person participating in the
conduct of the affairs of
MARSHALL COUNTY BANK
BRITTON, SOUTH DAKOTA
(Insured State Nonmember Bank—In
Receivership)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   Robert B. Marx ("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, violations of law, rule or regulation and breaches of fiduciary duty demonstrating willful or continuing disregard for safety and soundness alleged to have been committed by Respondent individually, and in his capacity as a director and a person participating in the conduct of the affairs of Marshall County Bank, Britton, South Dakota ("Bank"), resulting in substantial financial loss or other damage to the Bank, serious prejudice to the interests of the Bank's depositors and financial gain to the Respondent, 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 March 13, 1989, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, any violations of law, rule or regulation and any breaches of fiduciary duty, Respondent consented to the issuance of an ORDER OF 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, violations of law, rule or regulation and breaches of his fiduciary duty as a director of the Bank;
       (ii) The Bank suffered substantial financial loss or other damage, the interests of the Bank's depositors were seriously prejudiced by reason of such practices, violations and breaches of fiduciary duty, and Respondent received financial gain by reason of such practices, violations and breaches of fiduciary duty; and
       (iii) Such practices, violations and breaches of fiduciary duty demonstrated Respondent's willful or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such practices, violations and breaches of fiduciary duty demonstrated Respondent's unfitness to serve 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. Robert B. Marx 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).
{{12-31-91 p.C-310.3}}

   [.2] 2. Robert B. Marx 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.
   Dated this 9th day of April, 1990.

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