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[¶10,164] In the Matter of Stanley C. Mailhiot, Docket No. FDIC-90-269e (1-11-91).
Bank officer prohibited from further participation in affairs of Bank or of any federally insured or regulated financial institution, and from exercising voting rights in any such institution.
[.1] Prohibition—Service as Director
[.2] Prohibition—Participation in Conduct of Affairs
[.3] Prohibition—Exercise of Voting Rights
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In the Matter of
STANLEY C. MAILHIOT, individually
and as chief executive officer and
an institution-affiliated
party of SACRAMENTO
COMMERCIAL BANK,
SACRAMENTO, CALIFORNIA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
Stanley C. Mailhiot ("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 violation of law, rule, regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty by reason of which Sacramento Commercial Bank, Sacramento, California ("Insured Institution"), has suffered or will probably suffer substantial financial loss or other damage, and/or that the interest of depositors have been or could be prejudiced and/or that Respondent has received financial gain or other benefit: and which demonstrate that such violations, practices or breaches evidence Respondent's personal dishonesty and/or willful and/or continuing disregard for the safety and soundness of the Insured Institution. 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, and having waived those rights, Respondent 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, whereby solely for the purpose of this proceeding, and without admitting or denying any violations, any unsafe or unsound banking practices, or 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 that it had reason to believe that:
(i) Respondent has engaged or participated in violations of law, rule, regulation, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as chief executive officer and an institution-affiliated party of the Insured Institution;
(ii) By reason of such violations, practices and/or breaches of fiduciary duty, the Insured Institution has suffered or will probably suffer substantial financial loss or other damage, the interests of the Insured Institution's depositors tiave been or could be prejudiced and/ or Respondent received financial gain; and
(iii) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of Respondent or demonstrate Respondent's willful and/or continuing disregard for the safety or soundness of the Insured Institution.
The FDIC further determined that such violations, practices and/or breaches of fiduciary duty demonstrate Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party of the Insured Institution, or any other insured depository institution, any institution treated as an insured bank or savings association, any Federally insured credit union, any farm credit bank, any appropriate Federal depository institution regulatory agency, the Federal Housing Finance Board and any Federal Home Loan Bank or the Resolution Trust Corporation. The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
[.1,.2] 1. Stanley C. Mailhiot is hereby prohibited, without the prior written approval of the FDIC and the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q), from serving or acting as a director, officer, or employee of, or participating in any manner in the conduct of the affairs or serving as an institution-affiliated party of the Insured Institution, or any insured bank or savings association, any Federally insured credit union, any farm credit bank, any appropriate Federal depository institution regulatory agency, the Federal Housing Finance Board and any Federal Home
{{3-31-91 p.C-754}}Loan Bank or the Resolution Trust Corporation.
[.3] 2. Stanley C. Mailhiot is hereby prohibited from voting for a director, or soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, consent, or authorization with respect to the voting rights in the Insured Institution, or any other institution listed in paragraph 1 of this ORDER, without the prior written approval of the FDIC and the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
3. Stanley C. Mailhiot is hereby prohibited from violating any voting agreement previously approved by the appropriate Federal banking agency with regard to any institution listed in paragraph 1 of this ORDER, without the prior written approval of the FDIC and the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
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 11th day of Janury, 1991.
