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FDIC Enforcement Decisions and Orders

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   [12,257] In the Matter of Kenneth M. Matzdorff, Garden City Bank, Garden City, Missouri, Docket No. 04-172g (8-13-04).

   Respondent prohibited from participating in the conduct of affairs of any insured institution without the prior written approval of the FDIC.

In the Matter of
KENNETH M. MATZDORFF,
individually and as an institution-affiliated party of
GARDEN CITY BANK
GARDEN CITY, MISSOURI
(Insured State Nonmember Bank)
NOTICE AND ORDER OF SUSPENSION AND PROHIBITION FROM FURTHER PARTICIPATION

FDIC-04-172g

   Kenneth M. Matzdorff ("Respondent") has been advised of the right to receive a NOTICE AND ORDER OF SUSPENSION AND PROHIBITION FROM FURTHER PARTICIPATION ("NOTICE AND ORDER") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the federal criminal charges filed on or about July 27, 2004, and has been further advised of the right to a hearing on the alleged charges under section 8(g)(3) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. 1818(g)(3), 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 A NOTICE AND ORDER OF SUSPENSION AND 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 of law, Respondent consented to the issuance of a NOTICE AND ORDER by the FDIC.

   The FDIC considered the matter and determined it had reason to believe that:

       (a) Kenneth M. Matzdorff ("Respondent"), an institution-affiliated party of Garden City Bank, Garden City, Missouri ("Bank"), has been charged in the United States District Court for the Eastern District of New York with the criminal offense of conspiring to engage in "money laundering," in violation 18 U.S.C. §1956(h).

       (b) Under such circumstances, section 8(g)(1)(A) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. §1818(g)(1)(A), authorizes the FDIC, as the appropriate Federal banking agency for the Bank, following a determination that continued participation by Respondent in any manner in the conduct of the affairs of the Bank may pose a threat to the interests of the depositors of the Bank or may threaten to impair public confidence in the Bank, to issue and serve upon the Respondent a notice and order prohibiting the Respondent from further participation in any manner in the conduct of the affairs of the Bank.

       (c) The FDIC has reasonable cause to believe that continued participation by Respondent in any manner in the conduct of the affairs of the Bank may pose a threat to the interests of depositors of the Bank or may threaten to impair public confidence in the Bank.

       (d) The FDIC concludes that a NOTICE and ORDER should issue pursuant to section 8(g)(1)(A) of the Act, 12 U.S.C. §1818(g)(1)(A), prohibiting Respondent from further participation in the conduct of the affairs of the Bank.

   The FDIC, therefore, accepts the CONSENT AGREEMENT and issues the following:
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NOTICE AND ORDER OF SUSPENSION AND PROHIBITION

   Kenneth M. Matzdorff is hereby prohibited from further participation in any manner in the conduct of the affairs of the Bank.

   This NOTICE and ORDER shall become effective on the date of issuance.

   The provisions of this NOTICE and ORDER shall remain effective and enforceable until such Criminal Complaint is finally disposed of or until such time as any provision of this NOTICE AND ORDER shall have been terminated, suspended, or set aside by the FDIC.

   Pursuant to delegated authority.

   Dated at Washington, D.C. this 13th day of August, 2004.

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Last Updated 11/20/2004 legal@fdic.gov