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FDIC Enforcement Decisions and Orders

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   [11,475] In the Matter of Midland Bank, Lee's Summit, Missouri, Docket No. 96-027e and 96-028b (2-17-98)

   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. Further, respondent is prohibited from directly or indirectly engaging in any appraisal practice.

   [.1] Prohibition, Removal or Suspension—Prohibition From—Participation on Conduct of Affairs
   [.2] Prohibition, Removal or Suspension—Appraisal Practice

In the Matter of
KONNIE L. SANDERS,
individually, and as an
institution-affiliated party of
MIDLAND BANK
LEE'S SUMMIT, MISSOURI
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION AND
FOR OTHER AFFIRMATIVE RELIEF

FDIC-96-027e
FDIC-96-028b

   The Federal Deposit Insurance Corporation ("FDIC") on August 21, 1997, issued to Konnie L. Sanders ("Respondent") a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION AND NOTICE OF CHARGES FOR AN ORDER FOR RESTITUTION AND OTHER AFFIRMATIVE RELIEF AND NOTICE OF HEARING ("NOTICES") under sections 8(b) and 8(e) of the Federal Deposit Insurance Act ("Act") 12 U.S.C. §§ 1818(b) and 1818(e). The NOTICES charged Respondent, a licensed and certified real estate appraiser, with having engaged in unsafe or unsound practices and having violated certain laws and/or regulations, in connection with her performance of appraisals for and rendition of appraisal services to Midland Bank, Lee's Summit, Missouri ("Bank"), an insured state nonmember bank.
   Respondent and counsel for the FDIC thereafter executed a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND FOR OTHER AFFIRMATIVE RELIEF ("CONSENT AGREEMENT"), dated January 8, 1998, whereby solely for the purpose of this proceeding and without admitting or denying any of the unsafe or unsound practices or violations of law or regulations alleged in the NOTICES, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND
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FOR OTHER AFFIRMATIVE RELIEF ("ORDER") by the FDIC.
   The FDIC considered the matter and determined it has reason to believe that:
   (a) Respondent has engaged or participated in violations of law and regulations and unsafe or unsound practices as an institution-affiliated party of the Bank;
   (b) By reason of such violations and practices, 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 Respondent received financial gain or other benefit; and
   (c) Such violations and practices demonstrate Respondent's willful or continuing disregard for the safety and soundness of the Bank.
   The FDIC further determined that such violations and practices demonstrate Respondent's unfitness to serve as a director, officer, person participating in the conduct or 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).1
   The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
AND FOR OTHER
AFFIRMATIVE RELIEF

   [.1] 1. Konnie L. Sanders is hereby 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 right in any financial institution enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A)3;
   (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;
   without the prior written consent 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).

   [.2] 2. Respondent is further prohibited from directly or indirectly engaging in any appraisal practice, preparing or participating in the preparation of any appraisal report, accepting any appraisal assignment, or performing any other appraisal services with respect to real estate, real property, or personal property for, or on behalf of, any financial institution or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A),4 without the prior written consent of the FDIC and the appropriate Federal financial institutions regulatory agency.
   3. If Respondent is affiliated with another appraiser on the effective date of this ORDER, or begins such affiliation after such effective date, Respondent shall forthwith provide a copy of this ORDER to any such affiliated appraiser and provide the Regional Director of the FDIC's Kansas City Regional Office with written evidence of compliance with this provision.
   4. Respondent shall promptly provide


1 Subsection (b)(8), as referenced in section 8(e)(7)(A)(ii), 12 U.S.C. § 1818(e)(7)(A)(ii), has been redesignated as subsection (b)(9).

2 See footnote 1.

3 See footnote 1.

4 See footnote 1.
{{10-31-00 p.C-4479}}any documents or other evidence reasonably requested by the FDIC to demonstrate compliance with the provisions of this ORDER.
   5. For purposes of this ORDER, the following definitions apply:
   (a) "appraisal" means the act or process of estimating value; and estimate of value;
   (b) "appraisal practice" means the work performed by appraisers, including appraisal, review, and consulting;
   (c) "report" means any communication, written or oral, of an appraisal, review, or analysis;
   (d) "review" means the act or process of critically studying an appraisal report prepared by another;
   (e) "consulting" means the act or process of providing information, analysis of real estate data, and recommendations or conclusions on diversified problems in real estate, other than estimating value;
   (f) "real estate" means an identified parcel or tract of land, including improvements, if any;
   (g) "real property" means the interests, benefits, and rights inherent in the ownership of real estate;
   (h) "personal property" means identifiable portable and tangible objects which are considered by the general public as being "personal," e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate;
   (i) "appraisal assignment" means a person's employment or retention to act (or which would be perceived by third parties or the public as acting) as a disinterested third party to render an estimate of or opinion on the nature, quality, value, or utility of specified interests in or aspects of identified real estate;
   (j) "appraisal services" means services that are not encompassed within the definition of "appraisal assignment" but which relate in any way to the performance of, or consultation concerning, investment analyses, valuation reports, highest and best use studies, specialized marketing reports or studies, or market demand and economic feasibility studies; as well as any analyses, opinions and/or conclusions given in connection with real estate brokerage, mortgage banking, real estate counseling, or real estate tax counseling.
   6. All technical words or terms used in this ORDER, for which meanings are not specified or otherwise provided for by the provisions of this ORDER, shall, insofar as applicable, have meanings defined in Chapter 3 of Title 12 of the Code of Federal Regulations or the Act, as such definitions may be amended after the execution of this ORDER, and any such technical words or terms used in this ORDER and undefined in said Code of Federal Regulations or the Act shall have meanings that accord with their best custom and usage in the banking industry.
   This ORDER shall become effective ten (10) days from the date of its issuance.
   The provisions of this ORDER shall 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.
   By order of the Federal Deposit Insurance Corporation pursuant to delegated authority this 17th day of February, 1998.

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