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FDIC Enforcement Decisions and Orders

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{{10-31-96 p.C-3707}}
   [11,012] In the Matter of A. Lamar Smith, Citizens Bank & Trust Company, Springhill, Louisiana, Docket Nos. FDIC-93-198e, 93-199b (7-18-94).

   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, and ordered to pay restitution.

[.1] Prohibition—Participation in Conduct of Affairs
[.2] Prohibition—Exercise of Voting Rights
[.3] Restitution—Institution-Affiliated Party to Pay

In the Matter of
A. LAMAR SMITH,
individually, and as an
institution-affiliated party of
CITIZENS BANK & TRUST
COMPANY

SPRINGHILL, LOUISIANA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION
AND FOR RESTITUTION

FDIC-93-198e
FDIC-93-199b

   A. Lamar Smith ("Respondent") has received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION AND NOTICE OF CHARGES AND OF HEARING ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the alleged violations, unjust enrichment, unsafe or unsound banking practices, and/or breaches of fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR RESTITUTION ("ORDER") may issue, and has been further advised of the right to a hearing on the alleged charges under sections 8(e) and (b) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §§ 1818(e) and (b), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308. Having waived those rights, the Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR RESTITUTION ("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 alleged violations, unsafe or unsound banking practices, and/or any breaches of fiduciary duty, Respondent consented to the issuance of an ORDER by 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/or breaches of fiduciary duty as an institution-affiliated party of Citizens Bank & Trust Company, Springhill, Louisiana ("Bank");
   (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/or has been unjustly enriched; and
   (c) Such violations, practices and/or breaches of fiduciary duty involve personal dishonesty on the part of the Respondent or demonstrate the Respondent's willful and/or continuing disregard for the safety or soundness of the Bank.
   The FDIC further determined that such alleged violations, practices and/or breaches of fiduciary duty demonstrate the Respon- {{10-31-96 p.C-3708}}dent'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 has further determined that the Respondent has been unjustly enriched in connection with such alleged violations, and/or practices and that the Respondent should be required to make restitution to the Bank, pursuant to the provisions of section 8(b)(6)(A), 12 U.S.C. § 1818(b)(6)(A).
   The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR RESTITUTION

   [.1] 1. A. Lamar Smith 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.

   [.3] 2. A. Lamar Smith shall, within 60 days of the effective date of this Order, deliver a cashier's check in the amount of $50,000 to Citizens Bank & Trust Company, Springhill, Louisiana, as Restitution for the non-payment of interest on the checking accounts of Kennedy Trucking and Baine Smith Transport.
   3. 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 18th day of July, 1994.
   Pursuant to delegated authority.

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