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[¶12,158] In the Matter of Larry D. Bailey, Carolina First Bank, Greenville,
South Carolina, Docket Nos. 03-185e, 03-186k (2-27-04).
Respondent is 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. Respondent also agrees to pay civil
money penalty assessed by the FDIC in the amount of $10,000.
[.1] Prohibition, Removal, or SuspensionProhibition FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal, or SuspensionProhibition FromVoting Rights, exercise of
In the Matter of
LARRY D. BAILEY,
Individually and as an institution-affiliated party of
CAROLINA FIRST BANK
GREENVILLE, SOUTH CAROLINA
(Insured State Nonmember Bank)
ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION AND AN ORDER TO PAY A CIVIL MONEY PENALTY
FDIC-03-185e
FDIC-03-186k
Larry D. Bailey (the "Respondent") has been advised of the
right to receive a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND
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/or breaches of fiduciary duty for which an ORDER
OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION and
an ORDER TO PAY A CIVIL MONEY PENALTY 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 1818(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 REMOVAL FROM OFFICE AND PROHIBITION FROM
FURTHER PARTICIPATION AND AN 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 REMOVAL FROM OFFICE AND PROHIBITION FROM
FURTHER PARTICIPATION AND AN 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 3 of the Consent Agreement as an
institution-affiliated party of the Carolina First Bank, Greenville,
South Carolina (the "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 be prejudiced, and/or 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
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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 the Respondent; the gravity of
the breaches of fiduciary duty or unsafe or unsound banking practices
by the Respondent; the history of previous breaches of fiduciary duty
or unsafe or unsound banking practices by the Respondent; and such
other matters as justice may require, the FDIC accepts the CONSENT
AGREEMENT and issues the following:
ORDER OF REMOVAL FROM OFFICE AND PROHIBITION FROM FURTHER PARTICIPATION AND AN ORDER TO PAY A CIVIL MONEY PENALTY
1. IT IS HEREBY ORDERED, that the Respondent is removed from
office at any and all financial institutions with which he may be
affiliated 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), 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.
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 3 of the CONSENT AGREEMENT, a civil money penalty in the
amount of TEN THOUSAND DOLLARS ($10,000) be, and hereby is assessed
against the Respondent. The Respondent shall pay the civil money
penalty by delivering to the FDIC a certified check in the amount of
TEN THOUSAND DOLLARS ($10,000.) made payable 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 February, 2004.