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[¶11,266B] In the Matter of Raymond L. Stitz, Broadway Bank and Trust Company,
Paterson, New Jersey, Docket No. 95-130e (2-22-96)
Respondent 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
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In the Matter of
RAYMOND L. STITZ, individually
and as an institution-affiliated party of
BROADWAY BANK AND TRUST COMPANY
PATERSON, NEW JERSEY
(Insured State Nonmember BankIn Receivership)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-95-130e
Raymond L. Stitz ("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 practice, 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 breaches of fiduciary duty
as an institution-affiliated party of Broadway Bank and Trust Company,
Paterson, New Jersey (the "Bank");
(b) By reason of such violations, practices and/or breaches of
fiduciary duty, the Bank has suffered or will probably suffer
substantial 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, practices and/or
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, accepted the CONSENT AGREEMENT and issued the
following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
1. Raymond L. Stitz is, 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);1 provided,
however, that at any time after the effective date of this Order,
Raymond L. Stitz may apply to the FDIC and the appropriate Federal
financial institutions regulatory agency for their written consent to
participate in the conduct of the affairs of a financial institution or
organization;
[.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 previ-
1 Subsection (b)(8), as referenced in section
8(e)(7)(A)(ii), has been redesignated as subsection (b)(9).
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ously 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 ten (10) days after 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 22nd day of February, 1996.