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[¶11,811] In the Matter of Jack O. Grace, BestBank, Boulder, Colorado,
Docket No. 98-110e (6-27-01)
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
EDWARD P. MATTAR, III,
T. ALAN BOYD,
and JACK O.GRACE
individually and as
institution-affiliated parties of
BEST BANK
BOULDER, COLORADO
(Insured State Nonmember Bank—In Receivership)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
FDIC-98-110e
Jack O. Grace ("Respondent") has received a NOTICE OF
INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE")
issued by the Federal Deposit Insurance Corporation ("FDIC")
detailing the unsafe or unsound practices 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 unsafe or unsound practices, 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 engaged or participated in unsafe or unsound
practices as an institution-affiliated party of BestBank, Boulder,
Colorado;
(b) By reason of such unsafe or unsound practices, the Bank suffered
financial loss or other damage, and the interests of the Bank's
depositors have been prejudiced; and
(c) Such unsafe or unsound practices involved Respondent's continuing
disregard for the safety or soundness of the Bank.
The FDIC further determined that such unsafe or unsound practices
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, hereby accepts the CONSENT AGREEMENT and now
issues the following:
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ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
1. Jack O. Grace 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 voting for a director, or
serving or acting as an institution-affiliated party;
except that Respondent Grace will be permitted to own a less than
.1% (one-tenth of one per cent) shareholder interest in a
publicly-held bank holding company, provided that the company's shares
trade on the NYSE or the AMEX/NASDAQ exchange.
2. This ORDER will become effective upon 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 27th day of June, 2001.
