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[¶11,982] In the Matter of John C. Atwater, The Union State Bank of Everest,
Everest, Kansas, Docket No. 01-136e (11-8-02).
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
JOHN C. ATWATER,
individually and as an institution-affiliated party of
THE UNION STATE BANK OF EVEREST
EVEREST, KANSAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-01-136e
John C. Atwater ("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"), alleging the violations of law and
regulations, and/or 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"), whereby solely for
the purpose of this proceeding and without admitting or denying any
violations of law and regulations, and/or unsafe or unsound banking
practices, and/or breaches of fiduciary duty, Respondent consented to
the issuance of an ORDER by the FDIC.
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Upon due consideration, the FDIC determined it had reason to believe
that:
1. Respondent has engaged or participated in violations of law and
regulations, and/or unsafe or unsound banking practices, and/or
breaches of fiduciary duty, as an institution-affiliated party of The
Union State Bank of Everest, Everest, Kansas ("Insured
Institution").
2. By reason of such violations, and/or practices, and/or
breaches of fiduciary duty: (a) the Insured Institution has suffered or
will probably suffer financial loss or other damage; (b) the interests
of the Insured Institution's depositors have been or could be
prejudiced; and/or (c) Respondent has received financial gain or other
benefit.
3. Such violations, and/or practices, and/or breaches of fiduciary duty
involve personal dishonesty on the part of the Respondent, and/or
demonstrate the Respondent's willful and/or continuing disregard for
the safety or soundness of the Insured Institution.
The FDIC further determined that such violations, and/or
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 Insured Institution, of any other
insured depository institution, or of 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. Unless Respondent receives 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), Respondent is prohibited from:
(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);
(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 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 8th day of November, 2002.