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[¶12,149] In the Matter of Douglas R. Baetz, Glenn M. Gallant, Bestbank, Boulder,
Colorado, Docket No. 03-208e (2-11-04).
Respondents are prohibited from participating in the conduct of affairs
of, or exercising voting rights in, any insured institution without the
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
DOUGLAS R. BAETZ,
GLENN M. GALLANT,
individually, and as institution-affiliated parties of
BESTBANK
BOULDER, COLORADO
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-03-208e
Douglas R. Baetz and Glenn M. Gallant ("Respondents") have
been advised of the right to receive a NOTICE OF INTENTION TO PROHIBIT
FROM FURTHER PARTICIPATION ("NOTICE") and FINDINGS OF FACT AND
CONCLUSIONS OF LAW issued by the Federal Deposit Insurance Corporation
("FDIC") detailing the alleged violations of law or regulations
and/or unsafe or unsound banking practices for which an ORDER OF
PROHIBITION FROM FURTHER PARTICIPATION may be issued, and have 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 solely with respect to this
administrative proceeding, the Respondents entered into a STIPULATION
AND CONSENT TO PROHIBITION FROM FURTHER PARTICIPATION
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("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC,
whereby solely for the purpose of this proceeding and without admitting
any violations of law and/or unsafe or unsound banking practices, and
without agreeing to any of the determinations of the FDIC set forth
below, the Respondents consented to the issuance of an ORDER OF
PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
The FDIC considered the matter and determined it had reason to believe
that:
(a) The Respondents have recklessly engaged or
participated in the violations of law and/or regulations and unsafe or
unsound banking practices as institution-affiliated parties of
Bestbank, Boulder, Colorado, now in receivership, (the "Bank");
(b) By reason of such violations of law and/or regulations and unsafe
or unsound banking practices the Bank has suffered financial loss or
other damage, the interests of the Bank's depositors have been
prejudiced, and the Respondents received financial gain or other
benefit; and
(c) Such violations of law and/or regulations and unsafe or unsound
banking practices, if established, would demonstrate the Respondents'
willful and/or continuing disregard for the safety or soundness of the
Bank.
The FDIC further determined that such violations of law and/or
regulations and unsafe or unsound banking practices, if established,
would demonstrate the Respondents' unfitness to serve as a director,
officer, person participating in the conduct of the affairs or as
institution-affiliated parties 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).
Therefore, the FDIC accepts the CONSENT AGREEMENT and issues the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. IT IS HEREBY ORDERED, that Douglas R. Baetz and Glenn M.
Gallant, 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), are 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; and
(d) voting for a director, or serving or acting as
institution-affiliated parties.
2. This ORDER will become final and effective upon 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 11th day of February, 2004.