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FDIC Enforcement Decisions and Orders

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{{10-31-91 p.C-1384}}
   [10,321] In the Matter of Robert Bruggemeyer, Docket No. FDIC-91-233e (8-29-91).

   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
{{10-31-91 p.C-1385}}
In the Matter of
ROBERT BRUEGGEMEYER,
individually and as an
institution-affiliated party of
ALVARADO STATE BANK
ALVARADO, TEXAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   Robert Brueggemeyer ("Respondent"), individually, and as an institution-affiliated party of Alvarado State Bank, Alvarado, Texas ("Bank"), 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 or regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty of reason of which the Bank has suffered financial loss or other damage, and/or that the interests 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, and/or breaches evidenced Respondent's personal dishonesty and/or willful or continuing disregard for the safety and soundness of the Bank, 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, 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 May 9, 1991, whereby solely for the purpose of this proceeding and without admitting or denying any violations of law or regulation, any unsafe or unsound banking practices, and/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 or regulation, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as an institution-affiliated party of the Bank;
   (ii) By reason of such violations, practices, and/or breaches of fiduciary duty, the Bank has suffered financial loss or other damage, the interests of the Bank's depositors have been or could be prejudiced, and/or Respondent received financial gain; and
   (iii) Such violations, practices, and/or breaches of fiduciary duty involved Respondent's personal dishonesty and/or willful 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 evidence Respondent's unfitness to serve as an officer,, director, participant in the conduct of the affairs, or as an institution-affiliated party of the Bank, or any other insured depository institution, agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   [.1] 1. IT IS HEREBY ORDERED, that Robert Brueggemeyer is prohibited, without the prior written approval 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), from serving or acting as a director, officer, employee, or participating in any manner in the conduct of the affairs of the Bank, or from serving or acting as an institution-affiliated party or participating in any manner in the conduct of the affairs 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).

   [.2] 2. IT IS FURTHER ORDERED, that Robert Brueggemeyer is prohibited from voting for a director or soliciting, procuring, transferring or attempting to transfer, voting or attempting to vote any proxy, consent or authorization with respect to the voting rights in the Bank, or any other 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 approval of the FDIC and the appro- {{10-31-91 p.C-1386}}priate 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 Robert Brueggemeyer is prohibited from violating any voting agreement previously approved by the appropriate Federal banking agency as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q), without the prior written approval 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 notwithstanding the foregoing prohibitions set forth in paragraphs 1, 2, and 3, Robert Brueggemeyer may for the purposes of facilitating divestiture of his stock:

       (a) Vote for a merger involving the Bank without the prior written or verbal approval of the FDIC;
       (b) Vote for conversion of the Bank into a national bank without the prior written or verbal approval of the FDIC; and
       (c) Vote for amendment to the Articles of Association of the Bank for the purpose of increasing the authorized shares of capital stock without the prior written or verbal approval of the FDIC.
   This ORDER shall become effective ten (10) days after the date of its issuance by the FDIC pursuant to section 8(e) of the Act, 12 U.S.C. § 1818(e).
   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.
   Dated at Washington, D.C., this 29th day of August, 1991.
   Pursuant to delegated authority.

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