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FDIC Enforcement Decisions and Orders

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{{5-31-91 p.C-862}}
   [10,192] In the Matter of William J. Camuti, Docket No. 91-29e (3-12-91).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without prior consent of the FDIC.
   [.1] Prohibition—Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights

In the Matter of
WILLIAM J. CAMUTI,
individually and as an
institution-affiliated
party of
THE FARMERS STATE BANK
OFFERLE, KANSAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   William J. Camuti ("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, breaches of fiduciary duty, and/or violations of law, rule, or regulation alleged to have been committed by the Respondent individually and as an institution-affiliated party in his capacity as controlling shareholder and person participating in the conduct of the affairs of The Farmers State Bank, Offerle, Kansas ("Insured Institution"), which have resulted in substantial financial loss or other damage to the Insured Institution, serious prejudice to the interests of the insured Institution's depositors and/or financial gain or other benefit to the Respondent, and which involved personal dishonesty on the part of the Respondent and/or demonstrated a willful or continuing disregard for the safety or soundness of the Insured Institution; 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 and 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 No- {{10-31-92 p.C-863}}vember 27, 1990, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices, breaches of fiduciary duty, violations of law, rule, or regulation, personal dishonesty, or financial gain, the 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 reasons to believe that:

       (a) the Respondent has engaged or participated in unsafe or unsound banking practices, violations of law, rule or regulation, and/or breaches of his fiduciary duty as a controlling shareholder of the Insured Institution;
       (b) by reason of such practices, violations, and/or breaches of fiduciary duty, (i) the Insured Institution has suffered or will probably suffer substantial financial loss or other damage, (ii) the interests of the Insured Institution's depositors have been or could be seriously prejudiced, and/or (iii) the Respondent has received financial gain or other benefit; and
       (c) such practices, violations, and/or breaches of fiduciary duty demonstrate the Respondent's willful or continuing disregard for the safety or soundness of the Insured Institution and/or involve his personal dishonesty.
   The FDIC further determined that such practices, violations and breaches of fiduciary duty demonstrate the Respondent's unfitness to serve as an institution-affiliated party of any insured depository institution, agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), without the prior written consent of the FDIC and the appropriate Federal financial institution regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   [.1] 1. IT IS HEREBY ORDERED that, except with prior written consent obtained in accordance with section 8(e)(7)(B) of the Act, 12 U.S.C. § 1818(e)(7)(B), the Respondent is prohibited from participating in any manner in the conduct of the affairs of the Insured Institution.
   2. IT IS FURTHER ORDERED that, except with prior written consent obtained in accordance with section 8(e)(7)(B) of the Act, 12 U.S.C. § 1818(e)(7)(B), the Respondent shall not continue or commence to hold any office in, or participate in any manner in the conduct of the affairs of, any institution, agency or organization described in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), including:

       (a) any insured depository institution, as defined in section 3(c) of the Act, 12 U.S.C. § 1813(c);
       (b) any institution treated as an insured bank under sections 8(b)(3) or 8(b)(4) of the Act, 12 U.S.C. §§ 1818(b)(3) and (4), including, without limitation: (i) any bank holding company; (ii) any subsidiary of a bank holding company other than a bank; (iii) any foreign bank that maintains a branch or agency in a State; (iv) any foreign bank or foreign company controlling a foreign bank that controls a commercial lending company organized under State law; and (v) any company of which any foreign bank or company referred to in items (iii) and (iv) of this paragraph 2(b), is a subsidiary;
       (c) any institution treated as a savings association under section 8(b)(8) of the Act, 12 U.S.C. § 1818(b)(8), including, without limitation: (i) any holding company of a savings association; (ii) any subsidiary of such a holding company; (iii) any service corporation of a savings association; and (iv) any subsidiary of such service corporation, whether wholly or partly owned;
       (d) any insured credit union under the Federal Credit Union Act;
       (e) any institution chartered under the Farm Credit Act of 1971;
       (f) any appropriate Federal depository institution regulatory agency;
       (g) the Federal Housing Finance Board and any Federal home loan bank; and
       (h) the Resolution Trust Corporation.

   [.3] 3. IT IS FURTHER ORDERED that, except with prior written consent obtained in accordance with section 8(e)(7)(B) of the Act, 12 U.S.C. § 1818(e)(7)(B), the Respondent shall not:
       (a) solicit, procure, transfer, attempt to {{10-31-92 p.C-864}}transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in any institution described in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
       (b) violate any voting agreement previously approved by the appropriate Federal banking agency; or
       (c) vote for a director of any institution described in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A), or serve or act as an institution-affiliated party.
   This ORDER shall become effective 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 12th day of March, 1991.

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