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[¶11,735] In the Matter of Jeffrey C. Scheiner, Palos Bank and Trust Company,
Palos Heights, Illinois, Docket No. 98-055e (9-11-00).
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 SuspensionProhibition FromParticipation in
Conduct of Affairs
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[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights,
Exercise of
In the Matter of
JEFFREY C. SCHEINER
individually, and as aninstitution-affiliated party of
PALOS BANK AND TRUST COMPANY
PALOS HEIGHTS, ILLINOIS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-98-055e
Jeffrey C. Scheiner ("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 of law or
regulation, unsafe or unsound banking practices, and 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 charges under section 8(e) of the
Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), and
the FDIC 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 of law or
regulations, unsafe or unsound banking practices and 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 has engaged or participated in violations of law
or regulation, unsafe or unsound banking practices, and breaches of
fiduciary duty as an institution-affiliated party of the Palos Bank and
Trust Company, Palos Heights, Illinois ("Bank");
(b) By reason of such violations, practices, and breaches of fiduciary
duty, the Bank suffered financial loss or other damage; the interests
of the Bank's depositors have been or could be prejudiced; and the
Respondent received financial gain or other benefit, and
(c) Such violations, practices, and breaches of fiduciary duty involve
personal dishonesty on the part of the Respondent or demonstrate the
Respondent's willful or continuing disregard for the safety and
soundness of the Bank.
The FDIC further determined that such violations, practices, and
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. Jeffrey C. Scheiner 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.] (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.
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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 this 11th day of September, 2000.