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FDIC Enforcement Decisions and Orders

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{{6-30-98 p.A-2890}}
   [5245] In the Matter of Benny Dominguez, First Commerce Bank, Corpus Christi, Texas, FDIC Docket No. FDIC-96-050g (12-23-97)

   The respondent waived his right to an administrative hearing. Therefore, the FDIC Enforcement Counsel ordered that an order of prohibition from further participation become final and unappealable.

   [.1] Hearings—Request for—Withdrawal of request, effect
   Respondent waived the right to an administrative hearing. This resulted in his order of prohibition becoming final and unappealable.

In the Matter of
BENNY DOMINGUEZ,
individually, and as an
institution affiliated party of
FIRST COMMERCE BANK
CORPUS CHRISTI, TEXAS
(Insured State Nonmember Bank)
DECISION AND ORDER OF
PROHIBITION FROM FURTHER
PARTICIPATION

FDIC 96-050g

   This matter concerns the recommendation of Presiding Officer, Richard A. White, that the Motion for Summary Disposition ("Motion") jointly submitted by FDIC Enforcement Counsel and counsel for Benny Dominguez ("Respondent") be granted.
   Respondent was a vice president and institution-affiliated party of the First Commerce Bank, Corpus Christi, Texas ("Bank"). On January 12, 1996, Respondent was convicted of a criminal violation of 18 U.S.C. § 1956, following his plea of guilty to charges of laundering of monetary instruments. He was sentenced to a two-year prison term and a $2050.00 fine.
   [.1] As required by section 8(g)(1)(C)(ii) of the Federal Deposit Insurance Corporation (the "FDI Act"), 12 U.S.C. § 1818(g) (1)(C)(ii), on June 24, 1996, the Federal Deposit Insurance Corporation ("FDIC"), as the appropriate Federal banking agency for {{6-30-98 p.A-2891}}the Bank, issued and served upon the Respondent an order prohibiting him from further participation in any manner in the conduct of the affairs of the Bank without prior written consent of the FDIC.1 In accordance with section 8(g)(3) of the FDI Act, this order contained a Notice of Hearing giving Respondent an opportunity, if he requested it, to appear before the FDIC to show that his continued service to, or participation in, the conduct of the affairs of the Bank does not, or is not likely to pose a threat to the interests of the Bank's depositors or threaten to impair public confidence in the Bank.
   On July 26, 1996, counsel for Respondent requested a hearing pursuant to section 8(g)(3) of the FDI Act. After several postponements, the hearing was scheduled for September 29, 1997. By letter of September 12, 1997, however, the Presiding Officer and FDIC Enforcement Counsel were informed in writing by Respondent's counsel that Respondent "no longer wished to pursue the administrative legal proceeding concerning Section 8(g) of the Federal Deposit Insurance Act set for Monday, September 29, 1997...." On September 19, 1997, FDIC Enforcement Counsel and Respondent's counsel, submitted a Motion to the Presiding Officer. The Motion recognized that, under the requirements of Subpart N of the FDIC Rules of Practice and Procedure, the FDIC is entitled to an Order of Prohibition by operation of law. Further, the rules require that the Order of Prohibition dated June 24, 1996, shall become final and unappealable.2

ORDER

   For the reasons set forth above, the recommendation of the Presiding Officer is adopted. Pursuant to section 8(g) of the FDI Act, 12 U.S.C. § 1818(g), it is hereby Ordered that the Order of Prohibition dated June 24, 1996, is made final and unappealable and is continued in full force and effect.
   Pursuant to delegated authority, upon the advice and recommendation of the Deputy General Counsel.
   Dated at Washington, D.C., this 23rd day of December, 1997.


1 Section 8(g)(1)(C)(ii) provides: "In the case of a judgment of conviction or agreement against an institution-affiliated party in connection with a violation described in subparagraph (A)(ii), the appropriate Federal banking agency shall issue and serve upon such party an order removing such party from office or prohibiting such party from further participation in any manner in the conduct of the affairs of the depository institution without the prior consent of the appropriate agency." (Emphasis added.) The crimes referred to in subparagraph (A)(ii) involve money laundering and monetary transaction in property derived from specified unlawful activity, illegal money transmitting businesses (18 U.S.C. §§ 1956, 1957, 1960) and the related reporting requirements (31 U.S.C. §§ 5322, 5324).

2 Subpart N provides that when a Respondent waives the opportunity for an administrative hearing before the FDIC, the Order of Prohibition becomes final and unappealable and remains in full force and effect. 12 C.F.R. §§308.163 and 308.164.

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