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FDIC Enforcement Decisions and Orders

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{{10-31-94 p.C-3737}}
   [11,024] In the Matter of John J. Christo Jr. and John J. Christo III, Bay Bank & Trust Co., Panama City, Florida, Docket No. FDIC-94-24b (8-9-94).

   Respondents agree to cease and desist from such unsafe or unsound practices as extending credit to themselves and their related interests so as to cause losses to the bank and benefit to themselves.

[.1] Loans—Institution-Affiliated Party—Restitution

In the Matter of
JOHN CHRISTO, JR., individually,
and as an institution-affiliated
party, and JOHN CHRISTO, III,
individually, and as an
institution-affiliated party of
BAY BANK & TRUST CO.
PANAMA CITY, FLORIDA
(Insured State Nonmember Bank)
ORDER TO CEASE AND DESIST
FDIC-94-24b

   John Christo, Jr. and John Christo, III ("Respondents") have each received a written Notice of Charges and of Hearing detailing unsafe or unsound banking practices and violations of applicable laws and regulations alleged to have been committed by them as "institution-affiliated parties" of Bay Bank & Trust Co., Panama City, Florida ("Bank"). The Respondents have each been advised of their right to a hearing regarding such alleged charges under sections 8(b)(1) and (6) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §§ 1818(b)(1) and (6), and having waived that right, entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER TO CEASE AND DESIST ("CONSENT AGREEMENT") with a representative of the Legal Division of the Federal Deposit Insurance Corporation ("FDIC"), dated May 13, 1994, whereby solely for the purpose of this proceeding and without admitting or denying any of the alleged charges of unsafe or unsound banking practices and violations of applicable laws and regulations, the Respondents consented to the issuance of an ORDER TO CEASE AND DESIST ("ORDER") by the FDIC.
{{10-31-94 p.C-3738}}
   The FDIC considered the matter and determined that it had reason to believe that the Respondents have each engaged in unsafe or unsound banking practices and have committed violations of applicable laws and regulations.
   The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER TO CEASE AND DESIST

   IT IS HEREBY ORDERED, that the Respondents cease and desist from the following unsafe or unsound banking practices and violations of laws and regulations:
   A. Violating applicable laws and regulations more fully described on pages 5–16 of the Notice of Charges and of Hearing, Docket No. FDIC-94-24b, dated March 10, 1994 ("NOTICE");
   B. Causing or permitting the Bank to extend credit to the JCJ Irrevocable Trust of PC ("JCJ Trust") in violation of safe and sound banking practices;
   C. Causing or permitting the Bank to extend credit to John Christo, Jr. in violation of safe or sound banking practices;
   D. Causing or permitting the Bank to incur financial loss or other damage in regard to the Bank's extensions of credit to the JCJ Trust;
   E. Causing or permitting the Bank to incur financial loss or other damage in regard to the Bank's extensions of credit to John Christo, Jr.; and
   F. Receiving and retaining financial gain or other benefit in regard to the Bank's extensions of credit to the JCJ Trust and John Christo, Jr.
   IT IS FURTHER ORDERED that the Respondents take affirmative action as follows:
   [.1] 1. Respondent John Christo, Jr. shall be, and hereby is, held liable for and shall make restitution and/or provide reimbursement to the Bank in the sum of $425,000.00 in regard to the Bank's extensions of credit to John Christo, Jr. described on pages 10–13 of the NOTICE.
   2. Respondent John Christo, III shall be, and hereby is, held liable for and shall make restitution and/or provide reimbursement to the Bank in the sum of $426,000.00 in regard to the Bank's extensions of credit to the JCJ Trust described on pages 6–9 and 13–16 of the NOTICE.
   3. The restitution and/or reimbursement required pursuant to paragraphs 1 and 2 of this ORDER shall be made by the Respondents to the Bank not later than October 1, 1994.
   4. The restitution and/or reimbursement required pursuant to paragraphs 1 and 2 of this ORDER shall not be funded, directly or indirectly, in whole or in part, by any extension of credit or otherwise, or any other payment, guarantee or indemnification made by or on behalf of the Bank.
   5. The provisions of this ORDER shall become effective ten (10) days from the date of its issuance. Further, the provisions of this ORDER shall remain effective and enforceable except to the extent that, and until such time as, any provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Dated at Atlanta, Georgia, this 9th day of August, 1994.
   Pursuant to delegated authority.

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