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[¶11,939] In the Matter of Vernon Beryle Murdoch, Jr., Kent County State Bank,
Jayton, Texas, Docket Nos. 02-003e and 02-004k (6-10-02).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $2,500. Further, Respondent is 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
[.3] IndemnificationProhibited
In the Matter of
VERNON BERYLE MURDOCH, JR.,
individually, and as an institution-affiliated party of
KENT COUNTY STATE BANK
JAYTON, TEXAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION AND CIVIL MONEY PENALTY
FDIC-02-003e
FDIC-02-004k
Vernon Beryle Murdoch, Jr. ("Respondent") has been advised
of the right to receive a NOTICE OF INTENTION OF 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 AND CIVIL MONEY PENALTY
("ORDER") may issue, and has been further advised of the right to
a hearing on the alleged charges under 12 U.S.C. §1818(e) and 12
U.S.C. §1818(i) of the Federal Deposit Insurance Act ("Act"),
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 AND CIVIL MONEY PENALTY ("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 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 alleged
violations, unsafe or unsound banking practices, and/or breaches of
fiduciary duty as an institution-affiliated party of the Kent County
State Bank, Jayton, Texas ("Bank");
(b) By reason of such alleged violations, practices and/or breaches of
fiduciary duty, the Bank has suffered financial loss in the form of
uncollected significant overdraft fees, the interests of the Bank's
depositors have been prejudiced; and
(c) Such alleged violations, practices and/or breaches of fiduciary on
the part of the Respondent demonstrate the Respondent's willful and/or
continuing disregard for the safety or soundness of the Bank.
The FDIC further determined that such alleged violations,
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
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or as an institution-affiliated party of the Bank, any other insured depository
institution, or any other agency or organization enumerated in
12 U.S.C. §1818(e)(7)(A). Furthermore, the FDIC, after taking into
account the CONSENT AGREEMENT, the appropriateness of the penalty with
respect to the financial resources and good faith of the Respondent,
the gravity of the alleged violations by Respondent, the history of
previous violations by Respondent, and such other matters as justice
may require, the FDIC accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITIONFROM FURTHER PARTICIPATIONAND CIVIL MONEY PENALTY
1. Vernon Beryle Murdoch, Jr. is hereby assessed a penalty of
$2,500.00, payable in certified funds to the Treasury of the United
States;
2. Vernon Beryle Murdoch, Jr. is hereby, without the prior written
approval of the FDIC and the appropriate Federal financial institutions
regulatory agency, as that term is defined in 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 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
12 U.S.C. §1818(e)(7)(A);
(c) violating any voting agreement previously approved by the
appropriate Federal banking agency;
(d) voting for a director, or serving or acting as an
institution-affiliated party; and
[.3](e) seeking or accepting indemnification from any insured depository
institution for the civil money penalty assessed and paid in this
matter.
3. 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 10th day of June, 2002.