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FDIC Enforcement Decisions and Orders

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{{12-31-93 p.C-3461}
   [10,885] In the Matter of Fred A. Inabnit, Great Valley Bank, Ceres, California, Docket No. FDIC-93-188e (10-8-93).

   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
FRED A. INABNIT, individually,
and as an institution-affiliated party of
GREAT VALLEY BANK
CERES, CALIFORNIA
(Insured State Nonmember Bank)
ORDER OF
PROHIBITION FROM
FURTHER PROHIBITION

FDIC-93-188e

   FRED A. INABNIT ("RESPONDENT") has been advised of the right to receive 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/or breaches of fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and has been further advised of the right of 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 Procedures, 12 C.F.R. Part 308. Having waived those rights, RESPOND- {{12-31-93 p.C-3462}}ENT 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 denying any violations, unsafe or unsound banking practices, and/or 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 participating in violations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of Great Valley Bank, Ceres, California ("Bank"); and
   (b) 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 or other benefit; and
   (c) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of the RESPONDENT or demonstrate RESPONDENT'S willful and/or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined the violations, practices, and/or breaches of fiduciary duty demonstrate the RESPONDENT'S unfitness to serve as a director, officer, or person participating in the conduct of the affairs, or as an institution-affiliated party of the Bank, 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 OF PROHIBITION FROM
FURTHER PARTICIPATION

   [.1] 1. FRED A. INABNIT 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 financial institution or organization 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 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-affiliated party.
   2. This ORDER will become effective ten 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 the ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Dated at Washington, D.C., this 8th day of October, 1993.
   Pursuant to delegated authority.

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