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[¶12,078] In the Matter of Jimmy D. Morris and Clay County Bank, Clay, West
Virginia, Docket Nos. 03-024e, 03-045k (8-27-03).
Respondent is prohibited from participating in the conduct or affairs
of, or exercising voting rights in, any insured institution without the
prior written approval of the FDIC. Respondents agree to pay civil
money assessed by the FDIC in the amount of $5,000.
[.1] Prohibition, Removal or SuspensionProhibition FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights, Exercise of
In the Matter of
JIMMY D. MORRIS, individually, and
as an institution-affiliated party of
CLAY COUNTY BANK
CLAY, WEST VIRGINIA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND ORDER TO PAY A CIVIL MONEY PENALTY
FDIC-03-024e
FDIC-03-045k
Jimmy D. Morris ("Respondent") has been advised of the right
to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION
("NOTICE") and a NOTICE OF ASSESSMENT OF A CIVIL MONEY PENALTY,
FINDINGS OF FACT AND CONCLUSIONS OF LAW ("NOTICE OF ASSESSMENT")
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 OF PROHIBITION") and an ORDER TO PAY A
CIVIL MONEY PENALTY ("ORDER TO PAY") may be issued, and has been
further advised of the right to a hearing on the alleged charges under
sections 8(e) and 8(i) of the Federal Deposit Insurance Act
("Act"),12 U.S.C. §§ 1818(e) and (i), 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 AND ORDER TO PAY
A CIVIL MONEY PENALTY ("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
banking practices and/or breaches of fiduciary duty, the Respondent
consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER
PARTICIPATION AND ORDER TO PAY A CIVIL MONEY PENALTY ("ORDER") by
the FDIC.
The FDIC considered the matter and determined it had reason to believe
that:
(a) The Respondent has recklessly engaged or participated in the
unsafe or unsound banking practices and/or breaches of fiduciary duty
set forth in paragraph 4 of the CONSENT AGREEMENT as an
institution-affiliated party of the Clay County Bank, Clay, West
Virginia ("Bank");
(b) By reason of such unsafe or unsound banking 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 have been prejudiced, and the Respondent
received financial gain or other benefit; and
(c) Such unsafe or unsound banking 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 unsafe or unsound banking
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 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).
Therefore after taking into account the CONSENT AGREEMENT; the
appropriateness of the civil money penalty with respect to the
financial resources and good faith of
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the Respondent; the gravity of
the unsafe or unsound banking practices and/or breaches of fiduciary
duty by Respondent; the history of unsafe and unsound banking practices
and/or breaches of fiduciary duty by Respondent; and such other matters
as justice may require, the FDIC accepts the CONSENT AGREEMENT and
issues the following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND ORDER TO PAY A CIVIL MONEY PENALTY
1. IT IS HEREBY ORDERED, that Jimmy D. Morris is, 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. IT IS HEREBY FURTHER ORDERED, that by reason of the unsafe or
unsound banking practices and/or breaches of fiduciary duty set forth
in paragraph 4 of the CONSENT AGREEMENT, a civil money penalty in the
amount of FIVE THOUSAND DOLLARS ($5,000) be, and hereby is, assessed
against Jimmy D. Morris. The Respondent shall pay the civil money
penalty to the Treasury of the United States, and the Respondent is
prohibited from seeking or accepting indemnification from any insured
depository institution for the civil money penalty assessed and paid in
this matter.
3. This ORDER will become final and effective upon its 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 this 27th day of August, 2003.