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FDIC Enforcement Decisions and Orders

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{{9-30-91 p.C-1196}}
   [10,279] In the Matter of M. Robert Hecht, Docket No. FDIC-91-137e (7-19-91).

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without the prior consent of the FDIC.

   [.1] Prohibition—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights In the Matter of
M. ROBERT HECHT, individually, and as an officer, director, and/or person participating in the conduct of the affairs of
CITIZENS BANK
HOUSTON, TEXAS
(Insured State Nonmember Bank—in Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   M. Robert Hecht ("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 violations of law, rule, or regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty by reason of which Citizens Bank, Houston, Texas ("Bank") has suffered substantial financial loss or other damage, and/ or that the interests of depositors have been seriously prejudiced and/or that Respondent has received financial gain; 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 Bank. 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, dated November 29, 1990, 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 it had reason to believe that:

       (i) Respondent has engaged or participated in violations of law, rule or regulation, or order, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as an officer, director, and/or person participating in the conduct of the affairs of the Bank.
       (ii) By reason of such violations, practices and/or breaches of fiduciary duty, the Bank has suffered substantial financial loss or other damage, the interests of the Bank's depositors have been seriously 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 and/or demonstrate Respondent's willful and/or continuing disregard for the safety or soundness of the Bank.
   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 any insured depository institution, any institution treated as an insured bank or as a savings association, any Federally insured credit union, any farm credit bank, any appropriate Federal depository institutions 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] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of any insured depository institution, agency, or organization enumerated in section 8(2)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) {{6-30-95 p.C-1197}}(1989), without prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).

   [.2] 2. IT IS FURTHER ORDERED, that the Respondent shall not solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in 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 institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   3. IT IS FURTHER ORDERED, that the Respondent shall not violate any voting agreement with respect to 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), previously approved by the appropriate Federal financial institutions regulatory, without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   4. IT IS FURTHER ORDERED, that the Respondent shall not vote for a director, or serve or act as an institution-affiliated party, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), 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 institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D).
   This ORDER shall become effective ten days after issuance by the FDIC. 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 at Washington, D.C., this 19th day of July, 1991.

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