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FDIC Enforcement Decisions and Orders

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   [11,994] In the Matter of Todd B. Thompson, Western State Bank, Devils Lake, North Dakota, Docket No. 01-156e (12-6-02).

   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 Suspension—Prohibition From—Participation in Conduct of Affairs

   [.2] Prohibition, Removal or Suspension—Prohibition From—Voting Rights, Exercise of

In the Matter of
TODD B. THOMPSON,
individually and as an institution-affiliated party of
WESTERN STATE BANK,
DEVILS LAKE, NORTH DAKOTA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

FDIC-01-156e

   Todd B. Thompson ("Respondent") has been advised of his right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC"), detailing the 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 his right to a hearing on those 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 unsafe or unsound banking practices or breaches of fiduciary duty, Respondent consented to the issuance of an ORDER by the FDIC.

   Upon due consideration, the FDIC determined it had reason to believe that:

   (a) Respondent has engaged or participated in unsafe or unsound banking practices and breaches of fiduciary duty as an institution-affiliated party of Western State Bank, Devils Lake, North Dakota ("Insured Institution").

   (b) By reason of such practices and breaches of fiduciary duty, the Insured Institution has suffered financial loss or other damage;

   (c) By reason of such practices and breaches of fiduciary duty, the interests of the Insured Institution's depositors have been prejudiced; and

   (d) Such practices and breaches of fiduciary duty demonstrate Respondent's willful and continuing disregard for the safety or soundness of the Insured Institution.

   The FDIC further determined that such practices and 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 any 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).
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   The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

   1. Todd B. Thompson is 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;

   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).

   2. This ORDER shall be effective immediately upon issuance by the FDIC. 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 6th day of December, 2002.

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Last Updated 12/7/2003 legal@fdic.gov