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FDIC Enforcement Decisions and Orders |
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Bank director who failed to file an answer within the time provided is deemed to have consented to removal from his office and prohibition from further participation in the affairs of the bank, for improperly approving a loan in excess of the secured and unsecured lending limit.
[.1] Prohibition, Removal, or SuspensionNotice of IntentionFailure to Answer
Failure of a party to file an answer within the time provided shall be deemed a waiver of the right to appear and contest the allegations of the notice of hearing, and authorizes the ALJ, without further notice to the party, to find the facts to be as alleged in the notice, and to file a recommended decision.
ORDER OF PROHIBITION FROM
FDIC 86-35e
* * * ("Respondent"), having received a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC") on January 31, 1986, which detailed alleged violations of law and regulation, unsafe or unsound banking practices, and other acts, omissions and practices for which an action can be initiated by the FDIC under section 8(e)(1) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)(1)) to remove Respondent as a director of * * * Bank, * * * ("Bank"), and to prohibit Respondent from further participation in the conduct of the business and affairs of the Bank or any other bank insured by the FDIC, and the Bank, having been declared insolvent and closed by the * * * State Comptroller on April 18, 1986, and Respondent, having been advised of his right to a hearing regarding the allegations contained in the NOTICE under Section 8(e)(1) of the Act (12 U.S.C. § 1818(e)(1)) and Part 308 of the Rules of Practice and Procedures of the FDIC (12 C.F.R. Part 308) and having waived such right, executed a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT"), dated June 30, 1986, whereby, solely for the purpose of this proceeding and without admitting or denying any allegation contained in the NOTICE, Respondent consented to the issuance and imposition of a final ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
ORDER OF PROHIBITION FROM
IT IS ORDERED that:
STIPULATION AND CONSENT TO
FDIC 86-35e
Subject to the acceptance of this STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") by the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC"), it is hereby stipulated and agreed by and between a representative of the Legal Division of the FDIC and * * * ("Respondent") as follows:
ORDER OF PROHIBITION FROM
FDIC 86-35e
* * * ("Respondent"), having received a NOTICE OF INTENTION TO REMOVE FROM OFFICE AND TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC") on January 31, 1986, which detailed alleged violations of law and regulation, unsafe or unsound banking practices, and other acts, omissions and practices for which an action can be initiated by the FDIC under section 8(e)(1) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)(1)) to remove Respondent as a director of * * * Bank, * * * ("Bank") and to prohibit Respondent from further participation in the conduct of the business and affairs of the Bank or any other bank insured by the FDIC, and the Bank, having been declared insolvent and closed by the * * * State Comptroller on April 18, 1986, and Respondent, having been advised of his right to a hearing regarding the allegations contained in the NOTICE under section 8(e)(1) of the Act (12 U.S.C. § 1818(e)(1)) and Part 308 of the Rules and Practice and Procedures of the FDIC (12 C.F.R. Part 308) and having waived such right, executed a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT"), dated June 25, 1986, whereby, solely for the purpose of this proceeding and without admitting or denying any allegation contained in the NOTICE, Respondent consented to the issuance and imposition of a final ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") by the FDIC.
ORDER OF PROHIBITION FROM
IT IS ORDERED that:
ORDER OF REMOVAL FROM
FDIC-86-35e
In a proceeding in which Respondent * * * failed to answer, the Administrative Law Judge recommended issuance of an Order of Removal From Office and Prohibition From Further Participation pursuant to Section 8(e) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)(1)).
FDIC-86-35e
RECOMMENDED DECISION AS TO
By Notice Of Intention To Remove From Office And To Prohibit From Further Participation ("Notice"), the Federal Deposit Insurance Corporation ("FDIC") on January 31, 1986 instituted a proceeding against * * * ("Respondent"), and others, for the purpose of determining whether an appropriate order should be issued against each Respondent under the provisions of section 8(e) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)), removing each Respondent from his position as an officer and/or director of the * * * Bank, * * * ("Bank"), and prohibiting each Respondent from further participation in the conduct of the affairs of the Bank or any other bank insured by the FDIC. The Notice named as Respondents * * *, * * *, * * *, * * *, * * *, and * * *. This Recommended Decision concerns only Respondent * * *. Charges against the remaining respondents are pending as of this date.
[.1] Counsel points out that Section 308.06(d) of the FDIC Rules of Practice and Procedures (12 C.F.R. § 308.06(d)) provides:
FINDINGS OF FACT
1. On January 31, 1986, and pursuant to the provisions of section 8(e) of the Federal
{{4-1-90 p.A-918}}Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)) and Part 308 of the Federal Deposit Insurance Corporation Rules of Practice and Procedures (12 C.F.R. Part 308), the FDIC Board of Directors issued a Notice of Intention To Remove From Office and To Prohibit From Further Participation ("Notice") against Respondent * * * ("Respondent") for the purpose of removing said Respondent from his office as a director of * * * Bank, * * * ("Bank"), and prohibiting Respondent from any further participation in the conduct of the affairs of the Bank, or of any other bank insured by the FDIC.
CONCLUSIONS
Respondent has been duly served by the Federal Deposit Insurance Corporation with a Notice Of Intention To Remove From Office And To Prohibit From Further Participation. This Notice contained allegations that Respondent engaged or participated in unsafe and unsound banking practices; committed or participated in violations of law; committed or engaged in acts, omissions, or practices which constituted breaches of his fiduciary duties as a director of * * *; that he received financial gain by reason of such violations, practices and breaches of fiduciary duties; and that such violations, practices or breaches of fiduciary duties involved personal dishonesty and/or demonstrated a willful or continuing disregard for the safety and soundness of the Bank. These violations, practices or breaches of fiduciary duties will cause the Bank to suffer substantial financial loss or other damage, and the interests of the Bank's depositors will be seriously prejudiced.
ORDER OF REMOVAL FROM OFFICE
IT IS ORDERED that:
AFFIDAVIT
I, * * *, being duly sworn, do hereby affirm that the following statements are true and correct to the best of my knowledge:
MOTION FOR RECOMMENDED
FDIC 86-35e
The Federal Deposit Insurance Corporation ("FDIC") moves that the Administrative Law Judge duly assigned to hear this action file a Recommended Decision for the issuance of an Order of Removal From Office and Prohibition From Further Participation against * * * ("Respondent"). In support of this motion, FDIC states:
NOTICE OF INTENTION TO
FDIC 86-35e
The Federal Deposit Insurance Corporation ("FDIC"), being of the opinion that * * * ("Respondents"), individually and in their capacities as directors of * * * Bank, * * * ("Bank"), and as persons participating in the conduct of the affairs of the Bank, have engaged or participated in unsafe or unsound banking practices and that Respondents have committed or participated in violations of law, and committed or engaged in acts, omissions, or practices which constituted breaches of their fiduciary duties as directors of the Bank, and having reason to believe that the Bank has suffered or will probably suffer substantial financial loss or other damage, and that the interests of the Bank's depositors could be seriously prejudiced by reason of such violations, practices and breaches of fiduciary duties, and/or that Respondents have received financial gain by reason of such violations, practices and breaches of fiduciary duties, and being of the opinion that such violations, practices, or breaches of fiduciary duties involved personal dishonesty and/or demonstrated a willful or continuing disregard for the safety and soundness of the Bank by Respondents, institutes this proceeding for the purpose of determining whether an appropriate order should be issued against each Respondent under the provisions of section 8(e) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)), removing Respondent * * * from his position as chairman of the board and director of the Bank and Respondents * * *, * * *, * * *, * * * and * * * from their positions as directors of the Bank and prohibiting each Respondent from further participation in the conduct of the affairs of the Bank or any other bank insured by the FDIC.
RECOMMENDED DECISION
FDIC 86-35e
On January 31, 1986, the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC") issued a Notice of Intention to Remove From Office and To Prohibit From Further Participation ("Notice") against * * * ("Respondent"). The Notice issued against Respondent * * * contained specific allegations for which an Order of Removal From Office and Prohibition From Further Participation ("Order") could be issued against Respondent * * * under the provisions of section 8(e) of the Federal Deposit Insurance Act (12 U.S.C. § 1818(e)). The Notice specifically directed Respondent * * * to file an Answer within twenty (20) days from the date of service of such Notice, as provided in section 308.06(a) of the FDIC Rules of Practice and Procedures. Respondent * * * was served with the Notice on February 10, 1986; however, Respondent * * * has not filed an Answer to the allegations contained in the Notice and has not requested or received an extension of time to file an Answer to the allegations contained in the Notice. On April 22, 1986, FDIC filed a Motion for a Recommended Decision for the Issuance of an Order of Removal From Office and Prohibition From Further Participation by Default ("FDIC's Motion") against Respondent * * * for failure of Respondent * * * to answer the allegations contained in the Notice pursuant to section 308.06(d) of the FDIC Rules of Practice and Procedures (12 C.F.R. § 308.06(d)).
ORDER OF REMOVAL FROM
FDIC 86-35e
* * * ("Respondent"), having received a Notice of Intention to Remove From Office and to Prohibit From Further Participation ("Notice") issued by the Board of Directors of the Federal Deposit Insurance Corporation ("FDIC") on January 31, 1986, which detailed alleged violations of law and regulation, unsafe or unsound banking practices, and other acts, omissions, or practices for which an action can be initiated by the FDIC under section 8(e) of the Federal Deposit Insurance Act ("Act") (12 U.S.C. § 1818(e)(1)) to remove Respondent as a director of * * * Bank, * * * ("Bank") and to prohibit Respondent from further participation in the conduct of the business and affairs of the Bank or any other bank insured by the FDIC; and Respondent * * * having been advised of his right to a hearing regarding such alleged charges under section 8(e) of the Act and Part 308 of the Rules of Practice and Procedures of the FDIC (12 C.F.R. Part 308), and having waived such right by failing to file an Answer to the allegations contained in the Notice; the Administrative Law Judge having made a Recommended Decision recommending the issuance and imposition of a final Order of Removal From Office and Prohibition From Further Participation ("Order") against Respondent * * * for failure to answer the allegation contained in the Notice; the FDIC having determined that it had reason to believe that the statutory prerequisites for removal from office and prohibition from further participation in the operations and affairs of the Bank under section 8(e) of the Act were satisfied and that issuance and imposition of the Order against Respondent * * * was warranted. Thereupon, the FDIC accepted the Recommended Decision of the Administrative Law Judge and issued the following:
ORDER OF REMOVAL FROM OFFICE
IT IS ORDERED that:
CERTIFICATE OF SERVICE
Pursuant to Section 308.21 of the Rules of Practice and Procedures, I hereby certify that a copy of the FDIC Motion for Recommended Decision for Issuance of an Order of Removal From Office and Prohibition From Further Participation by Default with the attached proposed Recommended Decision and Order was sent by certified mail, return receipt requested, this 22nd day of April, 1986 to * * *. |
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Last Updated 6/6/2003 | legal@fdic.gov |