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FDIC Enforcement Decisions and Orders

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   [11,440] In the Matter of Kang Soo Lee, Korea Exchange Bank, Flushing, New York, Docket No. FDIC 97-034e (10-1-97)

   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—Participation in Conduct of Affairs
   [.2] Prohibition—Exercise of Voting Rights

In the Matter of
KANG SOO LEE
An Institution-Affiliated Party of the
Flushing Branch of
KOREA EXCHANGE BANK
FLUSHING, NEW YORK
(State Licensed Insured Branch of a
Foreign Bank)
and
KOREA EXCHANGE BANK
SEOUL, SOUTH KOREA
{{12-31-97 p.C-4406}}
ORDER OF PROHIBITION ISSUED
UPON CONSENT

96-038-E-I
and
FDIC-97-034e

   WHEREAS, pursuant to sections 8(e) and (i)(3) of the Federal Deposit Insurance Act, as amended (the "Act") (12 U.S.C. § 1818(e) and (i)(3)), the Board of Governors of the Federal Reserve System (the "Board of Governors") and the Federal Deposit Insurance Corporation (the "FDIC") issue this consent Order of Prohibition (the "Order") against Kang Soo Lee ("Lee"), a former officer and institution-affiliated party, as defined in sections 3(u) and 8(b)(4) of the Act (12 U.S.C. § 1813(u) and 1818(b)(4), of the Flushing branch of the Korea Exchange Bank, Flushing, New York, a state licensed insured branch of the Korea Exchange Bank, Seoul, South Korea (the "Bank"), a foreign bank, due to his alleged misappropriation of the Bank's funds during the time he was an officer of the Flushing branch; and
   WHEREAS, by affixing his signature hereunder, Lee has consented to the issuance of this Order by the Board of Governors and the FDIC and has waived any and all rights he might otherwise have pursuant to 12 U.S.C. § 1818, 12 C.F.R. Part 263, 12 C.F.R. Part 308, or otherwise (a) to the issuance of a notice of intent to prohibit; (b) to a hearing for the purpose of taking evidence with respect to any matter implied or set forth in this Order; (c) to obtain judicial review of this Order or any provision hereof; and (d) to challenge or contest in any manner the basis, issuance, validity, terms, effectiveness or enforceability of this Order or any provision hereof.
   NOW, THEREFORE, before the taking of any testimony or adjudication of or finding on any issue of fact or law implied or set forth herein; without this Order constituting an admission of any allegation made or implied by the Board of Governors or the FDIC in connection with this proceeding, and solely for the purpose of settlement of this proceeding without protracted or extended hearings or testimony:
   IT IS HEREBY ORDERED, pursuant to sections 8(e), (i)(3) and (j) of the Act 12 U.S.C. § 1818(e), (i)(3) and (j)), that:
   [.1] 1. Lee, without the prior written approval of the Board of Governors, the FDIC, and, where necessary pursuant to section 8(e) (7)(B) of the Act 12 U.S.C. § 1818(e)(7)(B)), another federal financial institution regulatory agency, is hereby and henceforth prohibited from:

    (a) Participating in any manner in the conduct of the affairs of any institution or agency specified in section 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)), including, but not limited to, any insured depository institution, or any bank or savings association holding company or any U.S. branch or agency of a foreign bank;
    [.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 institution described in section 8(e) (7)(A) of the Act;
    (c) violating any voting agreement previously approved by any federal banking agency; or
    (d) voting for a director, or serving or acting as an institution-affiliated party, such as an officer, director or employee, in any institution described in section 8(e)(7)(A) of the Act.
   2. Any violation of this Order shall separately subject Lee to appropriate criminal or civil penalties or both under section 8 of the Act (12 U.S.C. § 1818).
   3. This Order, and each and every provision hereof, is and shall remain fully effective and enforceable until expressly stayed, modified, terminated or suspended in writing by the Board of Governors and the FDIC.
   4. All communications regarding this Order shall be addressed to:
    (a) Mr. Robert A. O'Sullivan
    Senior Vice President
    Federal Reserve Bank of New York
    33 Liberty Street
    New York, New York 10045
    (b) Ms. Barbara A. Monheit
    Regional Counsel
    Federal Deposit Insurance Corporation
    New York Regional Office
    452 Fifth Avenue
    New York, New York 10018-2796
    (c) Mr. Kang Soo Lee
    #103-206 Hyundai Apt.
    202-5, Hongeun-3dong, Seodaemun-ku
    Seoul, 120-103, Korea
   5. The provisions of this Order shall not bar, estop, or otherwise prevent the Board of Governors, the FDIC, or any federal or state {{12-31-97 p.C-4407}}agency or department from taking any other action affecting Lee.
   By order of the Board of Governors effective this 14th day of May, 1997.
   By order of the Federal Deposit Insurance Corporation pursuant to delegated authority this 1st day of October, 1997.

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