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FDIC Enforcement Decisions and Orders

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{{7-31-99 p.C-4732}}
   [11,617] In the Matter of James E. Abbott, Community First State Bank (Formerly The Abbott Bank), Alliance, Nebraska, Docket Nos. 94-167e and 95-187k (5-27-99)

   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 Suspension—Prohibition From—Participation in Conduct of Affairs
   [.2] Prohibition, Removal or Suspension—Prohibition From—Voting Rights, Exercise of

In the Matter of
JAMES E. ABBOTT;
RICHARD L. GORDON;
MORRIS R. SHIELDS;
JOHN H. WESTERING;
ALAN W. FRIESEN;
BRUCE A. HOCKING;
GLENN P.OORLOG;
and
RITCH A. BAHE
COMMUNITY FIRST STATE BANK, (FORMERLY THE
ABBOTT BANK)
ALLIANCE, NEBRASKA
(Insured State Nonmember Bank)
ORDER OF PROHIBITIONFROM FURTHER PARTICIPATION AGAINST JAMES E. ABBOTT
FDIC-94-167e
FDIC-95-187k

   James E. Abbott ("Respondent"), has received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION; NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY AND NOTICE OF HEARING (collectively "NOTICE"), issued by the Federal Deposit Insurance Corporation ("FDIC") alleging the violations of law and/or regulation, unsafe or unsound banking practices, and/or breaches of fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION and an ORDER TO PAY may issue. Respondent has filed an Answer denying the material allegations of actionable conduct in the NOTICE and has been advised of the right to a hearing on the alleged charges under sections 8(e) and 8(i) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §§1818(e) and 1818(i), 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 BY RESPONDENT JAMES E. ABBOTT 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 resolving this proceeding without protracted or extended proceedings or further litigation by either party, and without further 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 OF PROHIBITION ("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 unsafe or unsound banking practices as an institution-affiliated party of the Community First State Bank (formerly The Abbott Bank), Alliance,Nebraska ("Bank");
       (b) By reason of such practices, the Bank suffered financial loss or other damage; and
{{7-31-99 p.C-4733}}
       (c) Such practices demonstrate the Respondent's willful and/or continuing disregard for the safety or soundness of the Bank.

   The FDIC, therefore, in settlement of the above-captioned two outstanding enforcement actions against Respondent, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION

   1. James E. Abbott is, without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency, as the term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. §1818(e) (7)(D), hereby 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);1

   [.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);2
   (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 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 provisions of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.
   Pursuant to delegated authority.
   Dated at Washington, D.C., this 27th day of May, 1999.


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.

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