[¶12,249] In the Matter of George A. Danello, Benjamin Franklin Savings Bank,
Franklin, Massachusetts, Docket No. 03-216k (8-2-04).
Respondent agrees to pay civil money penalty assessed by the FDIC in
the amount of $30,000.
In the Matter of
GEORGE A. DANELLO,
individually and as an institution-affiliated party of
BENJAMIN FRANKLIN SAVINGS BANK FRANKLIN, MASSACHUSETTS (Insured State Nonmember Bank)
AMENDED ORDER TO PAY CIVIL MONEY PENALTY
The Federal Deposit Insurance Corporation ("FDIC"), on
February 11, 2004, issued a NOTICE OF ASSESSMENT OF CIVIL MONEY
PENALTIES, FINDINGS OF FACT AND CONCLUSIONS OF LAW, ORDER TO PAY and
NOTICE OF HEARING ("Notice of Assessment") against George A.
Danello ("Respondent"), detailing the violations of Part 362 of
the FDIC Rules and Regulations, 12 C.F.R. Part 362 ("Part 362"),
and conditions imposed in writing by the FDIC for which an Order to Pay
Civil Money Penalty in the amount of $50,000 may issue pursuant to
section 8(i)(2) of the Federal Deposit Insurance Act ("Act"), 12
U.S.C. §1818(i)(2). The violations occurred between February 2,
2000, and July 27, 2000, and consisted of allowing the aggregate value
of the Benjamin Franklin Savings Bank's ("Bank") equity
portfolio measured at the lower of acquisition cost or market value to
exceed 100% of the Bank's tier one capital.
Respondent and Enforcement Counsel for the FDIC thereafter executed a
Stipulation and Consent to the Issuance of an Amended Order to Pay
Civil Money Penalty ("Consent Agreement"), dated June 8, 2004,
whereby solely for the purpose of this proceeding and without admitting
any of the allegations in the Notice of Assessment, the Respondent
agreed to withdraw his request for hearing and to waive his right to a
hearing on the Notice of Assessment and consented to the issuance of an
Amended Order to Pay Civil Money Penalty ("Amended Order to
The FDIC, therefore, accepted the Consent Agreement and issued the
IT IS HEREBY ORDERED THAT, the Order to Pay issued by the FDIC in the
above-captioned matter on February 11, 2004, is hereby amended as
(a) The amount of the civil money penalty to be assessed
against Respondent George A. Danello is reduced to $30,000, subject to
paragraphs (b), (c) and (d) below.
(b) Respondent shall pay the civil money penalty in two equal
installments of $15,000 each in the form of checks payable to the
Treasury of the United States, pursuant to section 308.118 of the FDIC
Rules of Practice and Procedure, 12 C.F.R. §308.118. The first
installment shall be paid upon execution of the Consent Agreement. The
remaining installment shall be paid within one year from the date of
the issuance of the Amended Order to Pay. Respondent shall forward the
checks to Regional Counsel (Supervision), David A. Schecker, Federal
Deposit Insurance Corporation, 15 Braintree Hill Office Park,
Braintree, Massachusetts 02184.
(c) In the event Respondent's financial condition proves to have been
materially different than the information contained in Respondent's
Financial Report as of May 4, 2004, which Financial Report has been
submitted to the FDIC, the amount of the civil money penalty assessed
against Respondent shall be $50,000, the amount specified in the
original Order to Pay.
(d) In the event Respondent fails to make both of the two $15,000
installment payments in accordance with the terms of the Consent
Agreement, the amount of the civil money penalty assessed against
Respondent shall be $50,000, the amount specified in the original Order