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[¶10,475] In the Matter of Theodore Richter, Cypress Coast Bank, Seaside, California, Docket No. FDIC-92-27e (3-9-92).
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
THEODORE RICHTER
individually and as a director
and institution-affiliated party
of
CYPRESS COAST BANK
SEASIDE, CALIFORNIA
(Insured State Nonmember Bank)
ORDER OF
PROHIBITION FROM
FURTHER PARTICIPATION
Theodore Richter ("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 alleged to have been engaged in by the Respondent individually and in his capacity as a director, participant in the conduct of the affairs of, and institution-affiliated party of, Cypress Coast Bank, Seaside, California ("Insured Institution"), which have resulted, or will probably result in, financial loss or other damage to the Insured Institution and/or prejudice to the interests of the Insured Institution's depositors and/or Respondent's financial gain or other benefit; and which demonstrate Respondent's 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 of Practice and Procedure, 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 21, 1991, whereby, solely for the purpose of this proceeding and without admitting or denying violations of law, rule, or regulation, breaches of fiduciary duty, and/or unsafe or unsound banking practices, 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 Respondent had engaged or participated in violations of law, rule, or regulation, breaches of fiduciary duty, and/or unsafe or unsound banking practices which prejudiced the interests of the Insured Institution's depositors, and resulted in financial loss to the Insured Institution and/or financial gain or other
{{2-28-95 p.C-2044}}benefit to Respondent, said violations, breaches and/or practices evidencing Respondent's willful or continuing disregard for the safety or soundness of the Insured Institution, and that the violations, breaches, and/or practices evidence Respondent's unfitness to serve as an officer, director, and/or institution-affiliated party of the Insured Institution or any other depository institution or agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989). The FDIC, therefore, accepts the CONSENT AGREEMENT and issues the following:
ORDER
[.1] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of the Insured Institution or 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) (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 the Insured Institution 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 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 agency, 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 the Insured Institution 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 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 (10) 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.
Dated at Washington, D.C., this 9th day of March, 1992.
Pursuant to delegated authority.
