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[¶10,216] In the Matter of Jeffrey J. Kurth, Docket No. FDIC-91-64e (4-10-91).
Former officer/director prohibited from further participation in conduct of affairs of, or exercising voting rights in, Bank or any insured institution without prior consent of FDIC.
[.1] Prohibition—Participation in Conduct of Affairs
[.2] Prohibition—Exercise of Voting Rights
In the Matter of
JEFFREY J. KURTH
individually, and as a former
director, officer, and participant
in the conduct of the affairs, and
as an institution-affiliated
party of
FIRST STATE BANK OF HARVARD
HARVARD, ILLINOIS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION
Jeffrey J. Kurth ("Respondent"), having been advised of his right to a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations of law, rule, or regulation, breaches of fiduciary duty, and unsafe or unsound banking practices which seriously prejudiced the interests of the depositors of First State Bank of Harvard, Harvard, Illinois ("Bank") and resulted in substantial financial loss to the Bank, which violations, breaches and practices evidence Respondent's willful or continuing disregard for the safety or soundness of the Bank; and having been further advised of his right to a hearing on the charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), and Part 308 of the FDIC's Rules of Practice and Procedures, 12 C.F.R. Part 308, and 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 dated January 11, 1991, whereby, solely for the purpose of this proceeding and without admitting or denying violations of law, rule, or regulation, breaches of fiduciary duty, or unsafe or unsound banking practices, Respondent consented to the issuance of an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
The FDIC considered the matter and determined that it had reason to believe that Respondent had engaged or participated in violations of law, rule, or regulation, breaches of fiduciary duty, and unsafe or unsound banking practices which seriously prejudiced the interests of the Bank's depositors, and resulted in substantial financial loss to the Bank, which violations, breaches and practices evidenced Respondent's willful or continuing disregard for the safety or soundness of the Bank, and that the violations, breaches, and practices evidenced Respondent's unfitness to serve as an officer, director, or participant in the conduct of the affairs of the Bank or any other depository institution or agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989). The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the following:
ORDER
[.1] 1. IT IS HEREBY ORDERED, that the Respondent shall not participate in any manner in the conduct of the affairs of the Bank or any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989), without the prior written consent of the FDIC and the appropriate Federal banking agency, as that term is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
[.2] 2. IT IS FURTHER ORDERED, that the Respondent shall not solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or authorization with respect to any voting rights in the Bank or any insured depository institution, agency, or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989), without the prior written consent of the FDIC and the appropriate Federal banking agency, as that term
{{12-31-92 p.C-973}} is defined in section 3(q) of the Act, 12 U.S.C. § 1813(q).
3. IT IS FURTHER ORDERED, that the Respondent shall not vote for a director, or serve or act as an institution-affiliated party, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u) (1989), of the Bank or any insured depository institution, agency, or organization, enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A) (1989).
This ORDER shall become effective ten days after issuance by the FDIC. The provisions of this ORDER shall 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 at Washington, D.C., this 10th day of April, 1991.
