[¶11,571A] In the Matter of Roger R. Lussier, Lyndonville Savings Bank and Trust Company, Lyndonville, Vermont, FDIC Docket No. 94-204g (12-8-98)
FDIC enables the transfer of forfeited assets as restitution to the Bank for losses caused by Respondent.
[.1] RestitutionPayment Required
IN THE MATTER OF
ROGER R. LUSSIER,
institution-affiliated party of
LYNDONVILLE SAVINGS BANK
AND TRUST COMPANY
(Insured State Nonmember Bank)
FORFEITED ASSETS OF
APPLIED RESEARCH AND
(Roger R. LussierSole Shareholder)
ORDER FOR RESTITUTION
Civil Action No. 1:93-CV-273,
Civil Action No. 1:95-CV-287,
Criminal Action No. 93-50-1
U.S.D.C. Dist. of Vermont.
WHEREAS, information has been presented to the Board of Directors ("Board") of the Federal Deposit Insurance Corporation ("FDIC") that certain assets of Applied Research and Development, Inc. ("ARDI"), a corporation wholly owned by Roger R. Lussier ("Lussier"), were forfeited to the United States pursuant to the Order of Forfeiture issued by the United States District Court for the District of Vermont on January 22, 1998, in Civil Action No. 1:93-CV-273, styled United States of America v. Applied Research and Development, Inc., and All of Its Assets; and
WHEREAS, the forfeited ARDI assets consisted of 1.41 acres of land in Hartford, Vermont; 5.10 acres of land in Hartford, Vermont; 127 acres of land in Wheelock, Vermont; 59.3 acres of land in Sutton, Vermont; 10 acres of land in Sutton, Vermont; a 1993 Ford truck; 1000 shares of stock of Lyndonville Savings Bank and Trust Company, Lyndonville, Vermont ("Bank") (subsequent to their seizure, the shares split and now constitute a total of 10,000 shares of stock); and a cashier's check in the amount of $847.37 (collectively "forfeited assets");and
WHEREAS, ARDI and all of its assets were properties involved in a transaction or attempted transaction in violation of 18 U.S.C. § 1957 and also were properties involved in or derived from proceeds of violations of 18 U.S.C. §§ 215, 1005, and 1344, committed by Lussier, formerly an institution-affiliated party of the Bank; and
WHEREAS, Lussier breached his fiduciary duties of loyalty and care to the Bank, committed gross negligence in the discharge of his duties to the Bank, and was the proximate cause of losses to the Bank in excess of Eight Million Seven Hundred Thousand Dollars ($8,700,000); and
WHEREAS, the Bank obtained a judgment in the United States District Court for the District of Vermont for compensatory damages in the amount of $8,769,740 against Lussier and ARDI in Civil Action No. 1:95-CV-287, styled Lyndonville Savings Bank v. Roger Lussier and Applied Research and Development, Inc., and such judgment is presently pending on appeal; and
WHEREAS, the FDIC is the "appropriate Federal financial institution regulatory agency" of the Bank, as that term is used in 18 U.S.C. § 981(e)(4); and
WHEREAS, the Attorney General of the United States ("Attorney General") has the authority, upon order of the FDIC, to transfer the forfeited property, or the proceeds derived from the sale thereof, to the Bank as restitution on such terms and conditions as the Attorney General may determine, with the value of the property so transferred to be set off against any later recoveries by the Bank as compensatory damages in any state or Federal proceeding, pursuant to 18 U.S.C. § 981(e)(4); and
WHEREAS, under the circumstances outlined above, it is appropriate for the FDIC to issue an order enabling the transfer of the forfeited assets as restitution to the Bank for losses caused by Lussier.
NOW, THEREFORE, it is hereby ORDERED that the forfeited assets may be transferred to Lyndonville Savings Bank and Trust Company, Lyndonville, Vermont.
By direction of the Board of Directors.
Dated at Washington, D.C., this 8th day of December, 1998.