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[¶11,815] In the Matter of Charles S. "Sam" Smith, Synergy Bank,
S.S.B., Waco, Texas, Docket No. 00-055e (7-2-01)
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 SuspensionProhibition
FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting
Rights, Exercise of
In the Matter of
CHARLES S. "SAM" SMITH
individually, and as an
institution-affiliated party of
SYNERGY BANK, S.S.B.
WACO, TEXAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
FDIC-00-055e
Charles S. "Sam" Smith ("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), and the FDIC Rules of Practice
and Procedure 12 C.F.R. Part 308. Having waived those rights,
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
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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. Respondent has engaged or participated in violations, unsafe or
unsound banking practices, and/or breaches of fiduciary duty as an
institution-affiliated party of the Synergy Bank, S.S.B., Waco, Texas
("Bank");
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 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. Charles S. "Sam" Smith 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.
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 provisions of
this ORDER shall have been modified, terminated, suspended, or set
aside by the FDIC.
Pursuant to delegated authority.
Dated this 2nd day of July, 2001.