Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders |
|||
FDIC Enforcement Decisions and Orders |
|
Civil money penalty was assessed against a bank director for making improper loans to officers and directors of the bank. Director's failure to file an answer to the charges constituted a waiver of the right to appear and contest the allegations.
[.1] Civil Money PenaltiesTime To Answer
[.2] Civil Money PenaltiesFailure To Answer
In the Matter of * * * * * * BANK
I. Procedural History
This proceeding, brought by the Federal Deposit Insurance Corporation ("FDIC"), seeks civil money penalties against * * *, individually and as a former director of * * * Bank * * *, for violation of section 22(h) of the Federal Reserve Act (12 U.S.C. § 375b) and Regulation O of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 215) (improper loans and extensions of credit to officers, directors, etc). These provisions apply to state nonmember banks pursuant to section 18(j)(2) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(j)(2)).
II. Regulatory Provisions
[.1] Section 308.06 of the FDIC Rules provides:
ORDER TO PAY CIVIL MONEY
The Board has reviewed the record in this proceeding, including the Administrative Law Judge's Recommended Default Decision and Order and finds * * * to have violated section 22(h) of the Federal Reserve Act (12 U.S.C. § 375b) and Regulation O of the Board of Governors of the Federal Reserve System (12 C.F.R. Part 215).
RECOMMENDED DEFAULT
WILLIAM A. GERSHUNY, Administrative Law Judge: By Motion of August 29, 1986, counsel for the Federal Deposit Insurance Corporation ("FDIC") seeks entry of a Recommended order of Default against Respondent * * * based on his failure to file an answer to notice of Assessment of Civil Money Penalties, as required by Sec. 308.06(a) of the FDIC Rules and Regulations.
[.2] The Motion of the FDIC will be granted. Sec. 308.06(d) of the Rules clearly provides that the failure of a party to file an answer constitutes a waiver of the right to appear and contest the allegations, and authorizes the immediate entry of a recommended decision. Respondent was put on notice of the requirement for the filing of both a request for hearing and an answer. The original Notice, issued on May 7, 1986, and amended on June 25, 1986, states:
AMENDED ORDER TO PAY
FDIC-86-104k
The Federal Deposit Insurance Corporation ("FDIC") issued a NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING ("NOTICE OF ASSESSMENT") on May 7, 1986 against, among others, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, and * * * ("Respondents"), individually and as former or present directors of * * * Bank * * * ("Bank"), pursuant to section 18(j)(3) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1828(j)(3)). Following the issuance of the NOTICE OF ASSESSMENT, information came to light concerning confusion on the part of some of the Respondents as to whether the penalty assessed against them was $300 each or $3,000 each. In order to clarify the FDIC's intention that the penalty in question was for $3,000, the FDIC has determined to amend the ORDER TO PAY accordingly.
STIPULATION AND CONSENT TO
Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN AMENDED ORDER TO PAY ("CONSENT AGREEMENT") by the Federal Deposit Insurance Corporation ("FDIC"), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC and Respondent * * * as follows:
FDIC 86-104k
AMENDED ORDER TO PAY
The Federal Deposit Insurance Corporation ("FDIC") issued a NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES. FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING on May 7, 1986 and an AMENDED ORDER TO PAY on June 25, 1986, against * * * , among others, assessing a civil money penalty against Respondent * * * for violation of section 22(h) of the Federal Reserve Act, 12 U.S.C. § 375b, and Regulation O of the Board of Governors of the Federal Reserve System promulgated thereunder, 12 C.F.R. Part 215, committed by Respondent * * * at the * * * Bank, * * * ("Bank").
NOTICE OF ASSESSMENT OF CIVIL
FDIC-86-104k
NOTICE OF ASSESSMENT OF CIVIL
The Federal Deposit Insurance Corporation ("FDIC") is of the opinion that * * * and * * * , individually and as former executive officers and former directors of * * * Bank * * * ("Bank"), and * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, and * * * individually and as former directors of the Bank, and * * * , * * * , and * * * , individually and as directors of the Bank (directors, former directors, and former executive officers collectively referred to as "Respondents") each has violated section 22(h) of the Federal Reserve Act (12 U.S.C. § 375b) and Regulation O of the Board of Governors of the Federal Reserve System ("Regulation O") (12 C.F.R. Part 215), promulgated thereunder and made to apply to insured State nonmember banks by section 18(j)(2) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1828(j)(2)). The FDIC hereby issues this NOTICE OF ASSESSMENT OF CIVIL MONEY PENALTIES, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY, AND NOTICE OF HEARING ("NOTICE OF ASSESSMENT"), pursuant to the provisions of section 18(j)(3) of the Act (12 U.S.C. § 1828(j)(3)) and the FDIC Rules of Practice and Procedures (12 C.F.R. Part 308). In support thereof, the FDIC finds and concludes as follows:
FINDINGS OF FACT AND
1. The Bank is a corporation existing and doing business under the laws of the State of * * *, having its principal place of business in * * *. The Bank is and was, at all times pertinent to this proceeding, an insured State nonmember bank subject to the Act (12 U.S.C. §§ 1811-1831d). * * * and * * * were, at all times pertinent to the charges against which each of their assessments is based, "executive officers" and "directors" of the Bank, as those terms are defined in sections 215.2(d) and 215.2(c), respectively, of Regulation O (12 C.F.R. §§ 215.2(d) and 215.2(c)). * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, and * * * each was, at all times pertinent to the charges against which each of their assessments is based, a "director" of the Bank, as that term is defined in section 215.4(c) of Regulation O (12 C.F.R. § 215.4(c)). * * *, * * *, and * * * each is and was, at all times pertinent to the charges against which each of their assessments is based, a "director" of the Bank, as that term is defined in section 213.4(c) of Regulation O (12 C.F.R. § 213.4(c)). The FDIC has jurisdiction over the Bank, each Respondent, and the subject matter of this proceeding.
ORDER TO PAY
After taking into account the appropriateness of the penalty with respect to the financial resources and good faith of * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, * * *, and * * *, the gravity of the violations of each Respondent, the history of previous violations of each Respondent, and any such other matters as justice may require, it is:
NOTICE OF HEARING
FURTHER ORDERED, that if any Respondent requests a hearing with respect to the charges in the NOTICE OF ASSESSMENT, the hearing shall commence 60 days from the date of receipt of such request at * * *. The hearing will be conducted in accordance with the provisions of the Act (12 U.S.C. §§ 1811-1831d), the Administrative Procedures Act (5 U.S.C. §§ 551559), and the FDIC Rules of Practice and Procedure (12 C.F.R. Part 308). The hearing will be held before an Administrative Law Judge to be appointed by the U.S. Office of Personnel Management pursuant to 5 U.S.C. § 3344. The exact time and location of the hearing will be determined by the Administrative Law Judge. The hearing will be private, unless the FDIC determines that a public hearing is necessary to protect the public interest. |
|
Last Updated 6/6/2003 | legal@fdic.gov |