{{12-31-03 p.C-5894}}
[¶12,109] In the Matter of Keith G. Eitreim, Jasper State Bank, Jasper,
Minnesota, Docket No. 03-003e (10-10-03).
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
KEITH G. EITREIM,
individually and as an institution-affiliated party of
JASPER STATE BANK
JASPER, MINNESOTA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION
FDIC-03-003e
Keith G. Eitreim ("Respondent") has been advised of his
right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER
PARTICIPATION ("NOTICE")
{{12-31-03 p.C-5895}}
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 issue, and has been further advised
of his 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 Rules of Practice and Procedure, 12 C.F.R. Part 308.
Having waived his 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,
or 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 Jasper State Bank,
Jasper, Minnesota ("Bank").
2. By reason of such violations, practices and breaches of fiduciary
duty: (a) the Bank has suffered financial loss and other damage; (b)
the interests of the Bank's depositors have been prejudiced; and, (c)
Respondent has received financial gain and other benefit.
3. Such violations, practices and breaches of fiduciary duty involve
personal dishonesty on the part of Respondent and demonstrate
Respondent's willful and continuing disregard for the safety or
soundness of the Bank.
The FDIC further determined that such violations, practices and
breaches of fiduciary duty demonstrate 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 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 10th day of October, 2003.