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[¶12,044] In the Matter of Daniel J. Schmitt, and Hartford-Carlisle Savings Bank,
Carlisle, Iowa, Docket No. 02-089e (5-5-03).
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
In the Matter of
DANIEL J. SCHMITT,
individually and as an institution-affiliated party of
HARTFORD-CARLISLE SAVINGS BANK
CARLISLE, IOWA
(Insured State Nonmember BankIn Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-02-089e
Daniel J. Schmitt ("Respondent") has been advised of his
right to receive a NOTICE
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OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC"), detailing the breaches of fiduciary duty
for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER
OF PROHIBITION") may be issued, and has been further advised of his
right to a hearing on those charges under section 8(e) of the Federal
Deposit Insurance Act ("Act"), 12 U.S.C. §1818(e), and the
FDIC Rules of Practice and Procedure, 12 C.F.R. Part 308. Having waived
those rights, Respondent entered into a STIPULATION AND CONSENT TO THE
ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
("CONSENT AGREEMENT"), whereby solely for the purpose of this
proceeding and without admitting or denying any breaches of fiduciary
duty, Respondent consented to the issuance of an ORDER OF PROHIBITION
by the FDIC.
Upon due consideration, the FDIC determined it had reason to believe
that:
A. Respondent has engaged or participated in breaches of his
fiduciary duty as an institution-affiliated party of Hartford-Carlisle
Savings Bank, Carlisle, Iowa ("Bank");
B. by reason of such breaches of fiduciary duty, the interests of the
Bank's depositors have been prejudiced; and
C. such breaches of fiduciary duty involve personal dishonesty on the
part of Respondent.
The FDIC further determined that such breaches of fiduciary duty
demonstrate Respondent's unfitness to serve as a director, officer,
person participating in the conduct of the affairs, or
institution-affiliated party of any insured depository institution or
of 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, accepts the CONSENT AGREEMENT and issues the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Daniel J. Schmitt is 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;
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).
2. This ORDER OF PROHIBITION shall be effective immediately upon
issuance and shall remain effective and enforceable until, and except
to the extent it is, modified, terminated, suspended, or set aside by
the FDIC.
Pursuant to delegated authority.
Dated at Washington, D.C., this 5th day of May, 2003.