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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 SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting 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.