[¶11,688] In the Matter of Constance C. Cirino and Ronald F. Shepard, Everett Savings Bank, Everett, Massachusetts, Docket No. 99-011e (1-12-00)
Respondents prohibited from participating in the conduct of affairs of 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
In the Matter of
CONSTANCE C. CIRINO and
RONALD F. SHEPARD,
individually and as institution-affiliated
EVERETT SAVINGS BANK
(N/K/A EAGLE BANK)
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM
Ronald F. Shepard ("Respondent Shepard") has received a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the violations, 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 alleged 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, Respondent Shepard 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 violations, unsafe or unsound banking practices, and/or any breaches of fiduciary duty, Respondent Shepard consented to the issuance of an ORDER by the FDIC.
The FDIC considered the matter and determined it had reason to believe that:
(a) Respondent Shepard has engaged or participated in violations of law and/or regulations, unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of the Everett Savings Bank, (N/K/A Eagle Bank), Everett, Massachusetts ("Bank");
The FDIC further determined that such violations, practices and/or breaches of fiduciary duty demonstrate Respondent Shepard'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).
(b) By reason of such violations, practices and/or breaches of fiduciary duty, the Bank has suffered or will probably suffer financial loss or other damage, the interests of the Bank's depositors have been or could be prejudiced and/or Respondent received financial gain or other benefit; and
(c) Such violations practices and/or breaches of fiduciary duty involve personal dishonesty on the part of Respondent Shepard or demonstrate Respondent Shepard's willful and/or continuing disregard for the safety or soundness of the Bank.
The FDIC, therefore, accepted the CONSENT AGREEMENT and issues the following:
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION
1. RONALD F. SHEPARD 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);
[.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 12th day of January, 2000.