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FDIC Enforcement Decisions and Orders

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{{7-31-92 p.C-2239}}
   [10,529] In the Matter of William E. Coleman, The Westover Bank, Westover, West Virginia, Docket No. FDIC-92-102e (5-8-92).

   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

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In the Matter of
WILLIAM E. COLEMAN,
individually,
and as an institution-affiliated
party of
THE WESTOVER BANK
WESTOVER, WEST VIRGINIA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-92-102e

   William E. Coleman ("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 and/or regulations, 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 an institution-affiliated party of The Westover Bank, Westover, West Virginia ("Bank"), which have resulted or will probably result in financial loss or other damage to the Bank and/or prejudice to the interests of the Bank's depositors and/or Respondent's financial gain or other benefit; and which demonstrate Respondent's personal dishonesty and/or willful and/or continuing disregard for the safety or 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 the FDIC Rules of Practice and Procedure, 56 Fed. Reg. 37,968 (1991) (to be codified at 12 C.F.R. Part 308), and having waived those rights, 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 March 6, 1992, whereby, solely for the purpose of this proceeding and without admitting or denying any violations of law and/or regulations, unsafe or unsound banking practices, and/or 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 and/or regulations, unsafe or unsound banking practices, and/or breaches of his fiduciary duty as a director and executive officer of the Bank;
   (ii) By reason of such violations, practices, and/or breaches of fiduciary duty, the Bank has suffered or will probably suffer 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 demonstrate Respondent's personal dishonesty and/or 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 or act as a director, officer, person participating in the conduct of the affairs of, or as an institution-affiliated party of, the Bank, or any other insured depository institution or 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

   [.1] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of the Bank or any insured depository institution, agency, or organizations 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).

   [.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 Bank 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), 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 de- {{3-31-95 p.C-2241}}pository 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 Bank 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), 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).
   The provisions of this ORDER shall become effective ten days after the date of its issuance by the FDIC and 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 this 8th day of May, 1992.
   Pursuant to delegated authority.

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