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FDIC Enforcement Decisions and Orders

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{{9-30-92 p.C-2514}}
   [10,588] In the Matter of Eugene W. Sladky, Union State Bank, Kewaunee, Wisconsin, Docket No. FDIC-91-405e (7-9-92).

   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
EUGENE W. SLADKY,
individually, and as a director,
officer, and/or person
participating in the conduct
of the affairs of
UNION STATE BANK
KEWAUNEE, WISCONSIN
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER
PARTICIPATION

FDIC-91-405e

   Eugene W. Sladky ("Respondent"), having received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations, unsafe or unsound banking practices, and breaches of fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and having been further advised of the right to a hearing on the charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), (1982) 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, the 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, whereby solely for the purpose of this proceeding and without admitting or de- {{10-31-00 p.C-2515}}nying any violations, unsafe or unsound banking practices, and breaches of fiduciary duty, Respondent consented to the issuance of an ORDER by the FDIC.
   The FDIC considered the matter and determined it had reason to believe that:
   (a) The Respondent has engaged or participated in violations, unsafe or unsound banking practices, and breaches of fiduciary duty as a director, officer, and/or person participating in the conduct of the affairs of the Bank;
   (b) By reason of such violations, practices, and breaches of fiduciary duty, the Bank has suffered substantial financial loss, and the interests of the Bank's depositors have been or could be seriously prejudiced; and
   (c) Such violations, practices and breaches of fiduciary duty involve personal dishonesty on the part of the Respondent and demonstrate the Respondent's willful or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such violations, practices, and breaches of fiduciary duty demonstrate the Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs of or 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, any other insured depository institution, or any other 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. Eugene W. Sladky is hereby, 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), prohibited from:

       (a) participating in any manner in the conduct of the affairs of any institution or agency enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);

    [.2] (b) soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent or authorization with respect to any voting rights in any institution or agency enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);
       (c) violating any voting agreement previously approved by the appropriate Federal banking agency; or
       (d) voting for a director, or serving or acting as an institution-affiliated party.
   2. This ORDER will become effective ten (10) days after its issuance. The provisions of this ORDER will 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 9th day of July, 1992.
   Pursuant to delegated authority.

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Last Updated 6/6/2003 legal@fdic.gov