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[¶11,039A] In the Matter of Michael P. Smith, Heritage Bank for Savings,
Holyoke, Massachusetts, Docket No. 94-107e (9-21-94)
Respondent prohibited from participating in the conduct of affairs of,
or exercising voting rights in, any insured institution without the
prior written approval of the FDIC.
[.1] Prohibition, Removal or SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights,
Exercise of
In the Matter of
MICHAEL P. SMITH,
individually, and as an institution-affiliated party of
HERITAGE BANK FOR SAVINGS
HOLYOKE, MASSACHUSETTS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-94-107e
Michael P. Smith ("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 to a hearing on the alleged
charges under section 8(e) of the Federal Deposit Insurance Act
("Act"), 12 U.S.C. § 1818(e) (1982) and (1989), 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
("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 any 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 participated in violations,
unsafe or unsound banking practices, and/or breaches of fiduciary duty
as an institution-affiliated party of the Bank;
(b) By reason of such violations, practices and/or breaches of
fiduciary duty, the Bank has suffered or will probably suffer
substantial financial loss or financial loss or other damage, the
interests of the Bank's depositors have been or could be seriously
prejudiced or 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 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
{{10-31-00 p.C-3762.3}} 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 PROHIBITION FROM FURTHER PARTICIPATION
1. Michael P. 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:
[.1] (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 (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.
Pursuant to delegated authority.
Dated this 21st day of September, 1994.