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   [11,613] In the Matter of Daniel Kosa, Southport Bank, Kenosha, Wisconsin, Docket No. 98-100e (4-30-99)

   Respondent prohibited from participating in the conduct of affairs of, or exercising voting rights in, any insured institution without prior written approval of the FDIC.

   [.1] Prohibition, Removal or Suspension—Prohibition From—Participation in Conduct of Affairs
   [.2] Prohibition, Removal or Suspension—Prohibition From—Voting Rights, Exercise of
   [.3] Indemnification—Prohibited
In the Matter of
DANIEL KOSA, individually,
and as an institution-affiliated party of
SOUTHPORT BANK
KENOSHA, WISCONSIN
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

FDIC-98-100e

   Daniel Kosa ("Respondent") has been ad- {{6-30-99 p.C-4717}}vised 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 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), 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 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 was an institution-affiliated party of Southport Bank, Kenosha, Wisconsin ("Bank");
   (b) The Respondent has engaged or participated in violations, unsafe or unsound practices, and/or breaches of fiduciary duty as an employee of Banc One Mortgage Corporation ("Banc One Mortgage");
   (c) By reason of such violations, practices and/or breaches of fiduciary duty, Banc One Mortgage has suffered or will probably suffer financial loss or other damage, and Respondent has received financial gain or other benefit; and
   (d) 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 Banc One Mortgage.
   The FDIC further determined that such violations, practices and/or breaches of fiduciary duty demonstrate the Respondent'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, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   1. Daniel Kosa is hereby, 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), 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.

   [.3] 2. IT IS FURTHER ORDERED that Respondent is prohibited from seeking or accepting indemnification from any insured depository institution for any expenses, including attorney's fees and disbursements incurred by Respondent in connection with this matter.
   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.
   Pursuant to delegated authority.
   Dated this 30th day of April, 1999.

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