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[¶12,217] In the Matter of Clinton O. Weidner, Capital City Bank, Topeka,
Kansas, Docket No. 04-041e (5-25-04).
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
CLINTON O. WEIDNER,
individually and as an institution-affiliated party of
CAPITAL CITY BANK
TOPEKA, KANSAS
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-04-041e
Clinton O. Weidner ("Respondent") has been advised of his
right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance
Corporation ("FDIC"), stating the violations of law and
regulations, unsafe or unsound banking practices, and breaches of
fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER
PARTICIPATION ("ORDER") may be issued. Respondent has been
further advised of his right to a hearing on the 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
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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 violations of law and regulations, unsafe or unsound banking
practices and breaches of fiduciary duty, Respondent consented to the
issuance of an ORDER by the FDIC.
Upon due consideration, the FDIC determined it had reason to believe
that:
1. Respondent has engaged or participated in violations of law and
regulations, unsafe or unsound banking practices and breaches of
fiduciary duty, as an institution-affiliated party of Capital City
Bank, Topeka, Kansas ("Bank").
2. By reason of such violations, practices and breaches of fiduciary
duty, the interests of the Bank's depositors have been or could be
prejudiced.
3. By reason of such violations, practices and breaches of fiduciary
duty, Respondent has received financial gain or other benefit.
4. Such violations, practices and breaches of fiduciary duty involve
personal dishonesty on the part of the Respondent.
5. Such violations, practices and breaches of fiduciary duty
demonstrate the Respondent's willful and/or continuing disregard for
the safety or soundness of the Bank.
The FDIC further determined that such violations, practices and
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, of any
other 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, accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Unless Respondent receives 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), Respondent 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.
2. This ORDER will become effective immediately upon 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 25th day of May, 2004.