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FDIC Enforcement Decisions and Orders

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{{8-31-95 p.C-3025}}
   [10,721] In the Matter of Erik E Lawson Jr., Peoples Bank One, West Lebanon, Pennsylvania, Docket No, FDIC-93-5e (2-17-93).

   Respondent removed from office and 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] Removal—As Officer or Director
   [.2] Prohibition—Participation in Conduct of Affairs
   [.3] Prohibition—Exercise of Voting Rights

In the Matter of
ERIK F. LAWSON, JR., individually
and as an institution-affiliated
party of
PEOPLE BANK ONE
WEST LEBANON, PENNSYLVANIA
(Insured State Nonmember Bank)
ORDER OF REMOVAL
FROM OFFICE AND
PROHIBITION FROM
FURTHER PARTICIPATION

FDIC-93-5e

   Erik E Lawson, Jr. ("Respondent"), having been advised of the right to receive a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations, unsafe or unsound banking practices, and/or breaches of fiduciary duty for which an ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and having been further advised of the 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's Rules of Practice and Procedure, 12 C.F.R. Pan 308, and having waived those rights, the Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a rep resentative of the Legal Division of the FDIC. whereby solely for the purpose of this proceeding and without admitting or denying any violations, unsafe or unsound banking practices, and/or any breaches of fiduciary duty, Respondent consented to the issuance of an ORDER by the FDIC.    {{8-31-95 p.C-3026}}
   The FDIC considered the matter and determined it has mason to believe that:
   (a) The Respondent has engaged or participated in violations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of Peoples Bank One, West Lebanon, Pennsylvania (the "Bank");
   (b) By reason of such violations, practices and/or breaches of fiduciary duty the Bank has suffered or will probably suffer financial lass or other damage, the interests of the Bank's depositors have been or could be prejudiced and/or Respondent received financial gain or other benefit; and
   (c) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of the Respondent or demons-ate the 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 the Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party 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 REMOVAL FROM OFFICE
AND PROHIBITION
FROM FURTHER PARTICIPATION

   [.1] 1. Erik F. Lawson, Jr. is hereby removed from office as President and Director of Peoples Bank One and, 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:

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

       [.3] (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 financial institution 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-affiliate 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 Washington, D.C., this 17th day of February, 1993.
   Pursuant to delegated authority.

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