{{6-30-00 p.C-4910}}
[¶11,701] In the Matter of John A. Sacco, Monson Savings Bank, Monson, Massachusetts, Docket No. 99-091e (4-5-00)
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 SuspensionProhibition FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights, Exercise of
In the Matter of
JOHN A. SACCO
Individually, and as
an institution-affiliated party of
MONSON SAVINGS BANK
MONSON, MASSACHUSETTS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION
FDIC-99-091e
JOHN A. SACCO (``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)
(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,
the Respondent consented to the issuance of an ORDER by the FDIC.
The FDIC considered the matter and determined it has reason to believe
that:
(a) The Respondent has engaged or participated in violations,
unsafe or unsound banking practices, and/or breaches of fiduciary duty,
individually and as an institution-affiliated party of Monson Savings
Bank (``Bank''), Monson, Massachusetts;
(b) By reason of such violations, practices, and/or breaches of
fiduciary duty, 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/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 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 in-
{{6-30-00 p.C-4911}}
stitution, 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
1. JOHN A. SACCO 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;
[.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 at Washington, D.C. this 5th day of April, 2000.
1 Subsection (b)(8), as referenced in section
8(e)(7)(A)(ii), has been redesignated as subsection (b)(9).
2 See footnote 1 above.