{{7-31-04 p.C-6149}
[¶12,220] In the Matter of Mark W. Wright, First Bank of the South, Rainsville,
Alabama, Docket Nos. 04-019e, 04-033k (5-27-04).
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. Respondent also agrees to pay civil
money penalty assessed by the FDIC in the amount of $2,500.
[.1] Prohibition, Removal, or SuspensionProhibition FromParticipation in
Conduct of Affairs
[.2] Prohibition, Removal, or SuspensionProhibition FromVoting Rights,
exercise of
In the Matter of
MARK W. WRIGHT,
individually, and as an institution-affiliated party of
FIRST BANK OF THE SOUTH
RAINSVILLE, ALABAMA
(Insured State Nonmember Bank)
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND AN ORDER TO PAY A CIVIL MONEY PENALTY
FDIC-04-019e
FDIC-04-033k
Mark W. Wright ("Respondent") has been advised of the right
to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION
("NOTICE") and a NOTICE OF ASSESSMENT OF A CIVIL MONEY PENALTY,
FINDINGS OF FACT AND CONCLUSIONS OF LAW ("NOTICE OF ASSESSMENT")
issued by the Federal Deposit Insurance Corporation ("FDIC")
detailing the unsafe or unsound banking practices and/or breaches of
fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER
PARTICIPATION AND AN ORDER TO PAY A CIVIL MONEY PENALTY may be issued,
and has been further advised of the right to a hearing on the alleged
charges under sections 8(e) and 8(i) of the Federal Deposit Insurance
Act ("Act"), 12 U.S.C. §§ 1818(e) and 1818(i), and the FDIC's
Rules of Practice and Procedure, 12 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 AND AN
ORDER TO PAY A CIVIL MONEY PENALTY ("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
unsafe or unsound banking practices and/or breaches of fiduciary duty,
Respondent consented to the issuance of an ORDER OF PROHIBITION FROM
FURTHER PARTICIPATION AND AN ORDER TO PAY A CIVIL MONEY PENALTY
("ORDER") by the FDIC.
{{7-31-04 p.C-6150}
The FDIC considered the matter and determined it had reason to believe
that:
(a) Respondent has recklessly engaged or participated in the unsafe
or unsound banking practices and/or breaches of fiduciary duty set
forth in paragraph 3 of the CONSENT AGREEMENT as an
institution-affiliated party of the First Bank of the South,
Rainsville, Alabama ("Bank");
(b) By reason of such unsafe or unsound banking practices and/or
breaches of fiduciary duty, the Bank has suffered or will probably
suffer 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 unsafe or unsound banking practices and/or breaches of
fiduciary duty involve personal dishonesty on the part of the
Respondent or demonstrate Respondent's willful and/or continuing
disregard for the safety or soundness of the Bank.
The FDIC further determined that such unsafe or unsound banking
practices and/or 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, 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).
Therefore, after taking into account the CONSENT AGREEMENT; the
appropriateness of the civil money penalty with respect to the
financial resources and good faith of Respondent; the gravity of the
breaches of fiduciary duty or unsafe or unsound banking practices by
Respondent; the history of previous breaches of fiduciary duty or
unsafe or unsound banking practices by Respondent; and such other
matters as justice may require, the FDIC accepts the CONSENT AGREEMENT
and issues the following:
ORDER OF PROHIBITION FROM FURTHER PARTICIPATION AND AN ORDER
TO PAY A CIVIL MONEY PENALTY
1. Respondent is hereby, 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);
[.2] (b) soliciting, procuring, transferring, attempting to transfer,
voting, or attempting to vote any proxy, consent or authorization with
respect to any voting rights to 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. IT IS HEREBY FURTHER ORDERED that by reason of the unsafe or
unsound banking practices and/or breaches of fiduciary duty set forth
in paragraph 3 of the CONSENT AGREEMENT, a penalty of TWO THOUSAND FIVE
HUNDRED DOLLARS ($2,500) be, and hereby is, assessed against
Respondent. Respondent shall pay the civil money penalty to the
Treasury of the United States, and Respondent is prohibited from
seeking or accepting indemnification from any insured depository
institution for the civil money penalty assessed and paid in this
matter.
3. This ORDER will become final and effective upon its issuance by the
FDIC. 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 27th day of May, 2004.