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[¶11,264B] In the Matter of Kenneth Annarummo, Attleboro Pawtucket Savings Bank,
Attleboro, Massachusetts, Docket No. 95-72e (2-1-96)
Respondent prohibited from participating in the conduct of
affairs of, or exercising voting rights in, any insured institution
without the prior written approval of the FDIC.
[.1] Prohibition, Removal or SuspensionProhibition FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal or SuspensionProhibition FromVoting Rights, Exercise of
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In the Matter of
KENNETH ANNARUMMO,
individually, and as an institution-affiliated party of
ATTLEBORO PAWTUCKET SAVINGS BANK
ATTLEBORO, MASSACHUSETTS
(Insured State Savings Bank - In Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-95-72e
Kenneth Annarummo ("Respondent") has been advised of
the right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC") detailing the unsafe or unsound banking
practices and/or breaches of fiduciary duty for which an ORDER OF
PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may issue, and
has been further advised of the 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 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 AN ORDER OF
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
unsafe or unsound banking practices and/or any breaches of fiduciary
duty, Respondent consented to the issuance of an ORDER by the FDIC.
The FDIC considered the matter and determined it had reason to believe
that:
(a) The Respondent has engaged or participated in unsafe or unsound
banking practices, and/or breaches of fiduciary duty as an officer,
person participating in the conduct of the affairs and as an
institution-affiliated party of the Attleboro Pawtucket Savings Bank,
Attleboro, Massachusetts ("Bank");
(b) By reason of such practices and/or breaches of fiduciary duty, the
Respondent received financial gain and/or the Bank has suffered
substantial financial loss or other damage; and
(c) Such practices and/or breaches of fiduciary duty involve personal
dishonesty on the part of the Respondent or demonstrate the
Respondent's willful and/or continuing disregard for the safety or
soundness of the Bank.
The FDIC further determined that such practices and/or
breaches of fiduciary duty demonstrate the Respondent's unfitness to
serve as a director, officer, person participating in the conduct of
the affairs or as an institution-affiliated party of the Bank, any
other insured depository institution, or any other agency or
organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C.
§1818(e)(7)(A).
The FDIC, therefore, accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Kenneth Annarummo is hereby, without the prior written approval
of the FDIC and the appropriate Federal financial institutions
regulatory agency, as that term is defined in section 8(e)(7)(D) of the
Act, 12 U.S.C. §1818(e)(7)(D), prohibited from:
[.1] (a) participating in any manner in the conduct of the affairs of any
financial institution or organization enumerated in section 8(e)(7)(A)
of the Act, 12 U.S.C. §1818(e)(7)(A);1
[.2] (b) soliciting, procuring, transferring, attempting to transfer,
voting, or attempting to vote any proxy, consent or authorization with
respect to any voting rights in any financial institution enumerated in
section 8(e)(7)(A) of the Act, 12 U.S.C. §1818(e)(7)(A);
(c) violating any voting agreement previously approved by the
appropriate Federal banking agency; or
(d) voting for a director, or serving or acting as an
institution-affiliated party.
2. This ORDER will become effective ten (10) days after its issuance.
The provisions of this ORDER will 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 this 1st day of February, 1996.
1 Subsection (b)(8), as referenced in section
8(e)(7)(A)(ii), 12 U.S.C. §1818(e)(7)(A)(ii), has been redesignated
as subsection (b)(9).