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[¶12,238] In the Matter of Danny Craig Blackwell, American State Bank, Lubbock,
Texas, Docket Nos. 04-014e, 04-015k (7-14-04).
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 $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
DANNY CRAIG BLACKWELL,
individually, and as an institution-affiliated party of
AMERICAN STATE BANK
LUBBOCK, TEXAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND ORDER TO PAY CIVIL MONEY PENALTY
FDIC-04-014e
FDIC-04-015k
Danny Craig Blackwell ("Respondent") has been advised of the
right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION AND ASSESSMENT OF CIVIL MONEY PENALTY ("NOTICE")
issued by the Federal Deposit Insurance Corporation ("FDIC")
detailing the violations of law or regulations, unsafe or unsound
banking practices, and/or
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breaches of fiduciary duty for which an ORDER
OF PROHIBITION FROM FURTHER PARTICIPATION AND ORDER TO PAY CIVIL MONEY
PENALTY ("ORDER") may issue, 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), 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
PROHIBITION FROM FURTHER PARTICIPATION AND ISSUANCE OF AN ORDER TO PAY
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 violations, unsafe
or unsound banking practices, and/or any breaches of fiduciary duty.
Respondent consented to the issuance of an ORDER by the FDIC.
The FDIC considered the matter and determined it had reason to believe
that:
(a) The Respondent has engaged or participated in violations,
unsafe or unsound banking practices, and/or breaches of fiduciary duty
as an institution-affiliated party of American State Bank, Lubbock,
Texas ("Bank").
(b) By reason of such violations, practices, and/or breaches of
fiduciary duty, the Bank has suffered more than minimal financial loss
or other damage, and/or the interests of the Bank's depositors have
been or could be prejudiced, and
(c) Such violations, practices, and/or breaches of fiduciary duty on
the part of Respondent demonstrate Respondent's willful and/or
continuing disregard for the safety or soundness of the Bank.
The FDIC further determined that such violations, 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).
Furthermore, the FDIC, after taking into account the Consent Agreement,
the appropriateness of the penalty with respect to the financial
resources and good faith of the Respondent, the gravity of the alleged
violations, practices, and/or breaches of fiduciary duty committed by
Respondent, the history of previous violations by Respondent, and such
other matters as justice may require, the FDIC accepted the Consent
Agreement and issued the following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND ORDER TO PAY CIVIL MONEY PENALTY
1. Danny Craig Blackwell is hereby, 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. Danny Craig Blackwell is hereby assessed a civil money penalty
of $5,000 payable in certified funds to the Treasurer 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 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 14th day of July, 2004.