Home > Regulation & Examinations > Bank Examinations > FDIC Enforcement Decisions and Orders |
|||
FDIC Enforcement Decisions and Orders |
|
Failure to timely answer notices "to cease and desist" and "to prohibit from participation" results in a default judgment. (Further proceedings in this docket appear at [¶
[.1] Practice and ProcedureSpecial Permission to Appeal Moot After Recommended Decision
{{4-1-90 p.A-1181}}
[.3] Prohibition, Removal, or SuspensionFailure to Answer Notice of IntentionSubsequent Answer Permitted
[.4] Cease and Desist OrderDefensesRecission of Transaction
In the Matter of * * *, individually and as
Statement of the Case
On April 16, 1987, the Federal Deposit Insurance Corporation ("FDIC") issued a Notice of Charges and of Hearing ("Notice") to * * *, * * *, * * *, * * *, * * *, * * *, * * * * * *, * * *, * * * and * * * ("Respondents"), and * * * Bank, * * * ("Bank"). The Notice was issued pursuant to the FDIC's cease and desist authority in section 8(b) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b). In the Notice, all respondents were directed to file an answer to the charges contained therein within 20 days after service as provided in section 308.06 of the FDIC Rules of Practice and Procedures, 12 C.F.R. § 308.06.
[.1] Since the ALJ has already forwarded his recommended "default judgment" as to Respondent * * *, * * * motion for special permission to appeal the ALJ's procedural rulings and * * * 's request for oral
{{4-1-90 p.A-1182}}argument are now moot. Accordingly, the Board dismisses them.
[.2] The Board agrees with the ALJ's conclusion that neither * * * nor * * * had any adequate excuse for their failure to timely file answers to the Notice. Ordinarily the Board would not permit a respondent to contest the charges against him or her after an unexcused waiver of that right occurs through failure to file a timely answer to a Notice of Charges. However, in this case, the Board issued Notices of Intention to Prohibit From Further Participation to * * * and * * * pursuant to section 8(e) of the Act subsequent to issuance of the section 8(b) Notice now at issue. Respondents * * * and * * * filed answers to the section 8(e) Notices exercising their right to contest the allegations against them which underlie the section 8(e) matter. Their answers have been accepted as timely. The section 8(e) proceedings have many facts in common with the allegations underlying the cease and desist proceeding. Accordingly, to assure that results reached are consistent, the Board declines to adopt the ALJ's recommended default judgment and cease and desist order as to Respondents * * * and * * *. We remand these proceedings to the ALJ with instructions that he permit Respondents * * * and * * * to file answers to the section 8(b) Notices. The section 8(b) proceedings and the section 8(e) proceedings should be consolidated for hearing.
[.3] Respondent * * * is also a subject of a section 8(e) proceeding which the Board instituted on July 21, 1987. However, he filed no answer in that case. Therefore he has waived his right to contest the facts which underly both proceedings.
* * *'s Motion to Dismiss the Notice of Charges
[.4] Since the proposed cease and desist order includes provisions which are required to return the Bank to a safe and sound condition and which are not affected by the alleged rescission of the transactions mentioned in * * * 's motion, the motion to dismiss the section 8(b) proceeding is denied.
IT IS ORDERED:
1. Respondent * * * 's Motion for Special Permission to Appeal the Ruling of the Administrative Law Judge and his request for oral argument are DISMISSED as moot.
/s/ Hoyle L. Robinson
RECOMMENDED DEFAULT
On the Federal Deposit Insurance Corporation's ("FDIC") Motion for Recommended Default Judgment pursuant to section 308.06(d) of the FDIC Rules and Regulations, 12 C.F.R. § 308.06(d), the Administrative Law Judge, being fully advised in this matter and having considered the failure to * * *, * * * , * * * and * * * ("Respondents") to file a timely answer to the Notice of Charges and of Hearing ("Notice") as required by section 308.06(a) of said Rules, hereby orders as follows:
William A. Gershuny
NOTICE OF CHARGES AND
EXHIBIT A
The Federal Deposit Insurance Corporation ("FDIC"), being of the opinion that * * * Bank, * * * ("Bank"), and * * *, * * *, * * *, * * *, * * *, * * *, * * * , * * *, * * *, * * *, and * * * ("Respondents") have engaged in unsafe or unsound banking practices and violations of laws and regulations and/or, unless restrained, will engage in unsafe or unsound practices and violations of laws and regulations in conducting the business of the Bank, hereby institutes this proceeding for the purpose of determining whether an appropriate order shall be issued against the Bank under the provisions of section 8(b)(1) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(b)(1). The FDIC hereby issues this NOTICE OF CHARGES AND OF HEARING ("NOTICE") under the provisions of the Act, 12 U.S.C. §§ 1811-1831d, and the FDIC Rules of Practice and Procedures, 12 C.F.R. Part 308, and alleges as follows:
By direction of the Board of Directors.
/s/ Hoyle L. Robinson
ORDER TO CEASE AND DESIST
IT IS HEREBY ORDERED, that Respondents * * * , * * * , * * * , and * * * , their employees, agents, successors, and assigns, cease and desist from the following unsafe or unsound banking practices and violations of law and rules and regulations: |
|
Last Updated 6/6/2003 | legal@fdic.gov |