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[¶12,126] In the Matter of Barry S. Armstrong and Peoples Bank of Mount
Washington, Mount Washington, Kentucky, Docket No. 03-145e (11-20-03).
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.
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[.1] Prohibition, Removal, or SuspensionProhibition FromParticipation in Conduct of Affairs
[.2] Prohibition, Removal, or SuspensionProhibition FromVoting Rights, exercise of
In the Matter of
BARRY S. ARMSTRONG,
individually, and as institution-affiliated party of
PEOPLES BANK OF MOUNT WASHINGTON
MOUNT WASHINGTON, KENTUCKY
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-03-145e
Barry S. Armstrong ("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 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, 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 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 violations,
unsafe or unsound banking practices, and/or any breaches of fiduciary
duty as an institution-affiliated party of the Peoples Bank of Mount
Washington, Mount Washington, Kentucky;
(b) By reason of such violations, unsafe or unsound banking practices,
and/or any 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 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 violations, unsafe or
unsound banking practices, and/or any 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, accepts the CONSENT AGREEMENT and issues the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Barry S. Armstrong 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.
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2. This ORDER will become effective ten (10) days after its
issuance by the FDIC. 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 20th day of November, 2003.