[¶10,914] In the Matter of Brett E. Morehouse, Citizens Bank & Trust of Kansas City, Kansas City, Kansas, Docket No. FDIC-93-242g (12-9-93).
Respondent who has been indicted for a crime involving dishonesty is suspended and prohibited from further participation in Bank's affairs. (This order was terminated by order of the FDIC dated 5-31-95; see ¶15,911.)
In the Matter of
BRETT E. MOREHOUSE, as an
institution-affiliated party of
CITIZENS BANK & TRUST OF
KANSAS CITY, KANSAS
(Insured State Nonmember Bank)
NOTICE AND ORDER OF
SUSPENSION AND PROHIBITION
It appears to the Federal Deposit Insurance Corporation ("FDIC") that Brett E. Morehouse ("Respondent"), an institution-affiliated party of Citizens Bank & Trust of Kansas City, Kansas City, Kansas ("Bank"), in his capacity as a temporary consultant participating in the conduct of the affairs of the Bank, has been charged in an indictment filed on or about February 9, 1993, by a Grand Jury in the United States District Court for the Western District of Missouri, Western Division, Case Number 93-00021-01/02-CR-W-2, with the commission of, or participation in, a crime involving dishonesty or breach of trust punishable by imprisonment for a term exceeding one year, to-wit: one count of making a false statement of material fact to a bank examiner of the FDIC in violation of 12 U.S.C. § 1001.
It further appears that the charge relates to a statement allegedly made by the Respondent in his former capacity as a vice president and loan officer of Metro North State Bank, Kansas City, Missouri ("Metro North"), during a loan discussion meeting with an FDIC bank examiner. The charge alleges that Respondent stated to the FDIC bank examiner that Metro North had extended a $3,000,000 loan to Frank P. Crivello for "capital improvements on various K-Marts." The charge alleges that the Respondent knowingly, willfully, and falsely made such statement when, in fact, he knew that the loan was used to benefit a shopping center development being developed by Gerald Biehl.
It further appears that the continued participation in the conduct of the affairs of the Bank by Respondent may pose a threat to the interests of the depositors of the Bank and may threaten to impair public confidence in the Bank.
After due consideration and resolution:
IT IS HEREBY ORDERED, pursuant to the provisions of section 8(g)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(g)(1), that the Respondent be, and hereby is, prohibited from further participation in any manner in the conduct of the affairs of the Bank.
Pursuant to the provisions of 8(g)(3) of the Act, 12 U.S.C. § 1818(g)(3), within 30 days from service of this NOTICE AND ORDER OF SUSPENSION AND PROHIBITION ("NOTICE"), Respondent may request in writing an opportunity to appear before the FDIC to show that his continued service to, or participation in the conduct of the affairs of this Bank does not, or is not likely to, pose a threat to the interests of the depositors of the Bank or threaten to impair public confidence in the Bank. Upon receipt of such a request, the FDIC will fix a time and place for a hearing not later than 30 days from receipt of the request. The hearing will be conducted in the manner prescribed in section 8(g)(3) of the Act, 12 U.S.C. § 1818(g)(3), and section 308.164 of the FDIC Rules of Practice and Procedure, 12 C.F.R. § 308.164.
An original and one copy of all papers filed in this proceeding shall be served upon the FDIC's Office of the Executive Secretary, 550 17th Street, N.W., Washington, D.C. 20429. Copies of all papers filed in this proceeding shall be served upon Arthur L. Beamon, Associate General Counsel, Compliance and Enforcement Section, 550 17th Street, N.W., Washington, D.C. 20429, and upon Gerald F. Lamberti, Regional Counsel (Supervision), Kansas City Regional Office, 2345 Grand Avenue, Suite 1500, Kansas City, Missouri 64108.
The provisions of this NOTICE shall become effective upon service of this NOTICE, and shall remain effective until terminated by the FDIC or until the final disposition of the said indictment.
By direction of the Board of Directors.
Dated at Washington, D.C., this 9th day of December, 1993.