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[¶12,253] In the Matter of Joseph Brian Hartley, United Community Bank, Lenoir
City, Tennessee, f/k/a First Central Bank, Lenoir City, Tennessee,
Docket No. 04-013e (8-13-04).
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.
[.1] Prohibition, Removal, or SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal, or SuspensionProhibition FromVoting Rights,
exercise of
In the Matter of
JOSEPH BRIAN HARTLEY,
individually, and as an institution-affiliated party of
UNITED COMMUNITY BANK
LENOIR CITY, TENNESSEE
f/k/a FIRST CENTRAL BANK
LENOIR CITY, TENNESSEE
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-04-013e
JOSEPH BRIAN HARTLEY ("Respondent") has been advised of the
right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC") detailing the violations of law, unsafe or
unsound banking practices, and/or breaches of fiduciary duty for which
an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may
issue, and has been further advised of the right to a hearing on the
alleged charges under section 8(e) of the Federal Deposit Insurance Act
("Act"), 12 U.S.C. §1818(e), and the FDIC's 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") 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
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) Respondent has engaged or participated in violations, unsafe or
unsound banking practices, and/or breaches of fiduciary duty as an
institution-affiliated party of United Community Bank, Lenoir City,
Tennessee, f/k/a First Central Bank, Lenoir City, Tennessee;
(b) By reason of such violations, 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 Respondent received financial gain or
other benefit; and
(c) Such violations, practices, and/or breaches of fiduciary duty
involve personal dishonesty on the part of the Respondent or
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 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).
The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Joseph Brian Hartley 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:
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[.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. This ORDER will become effective upon its issuance. 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 13th day of August, 2004.