| In the Matter of
JAMES GARY EARLY
An Institution Affiliated Party and
|
Docket No. 98-0802-III |
Pursuant to Section 206(i)(1) of the Federal Credit Union Act, 12 U.S.C. §1786(i)(1), you are hereby notified that you are prohibited from participating in any manner in the affairs of any federally insured credit union. This prohibition results from activities you engaged in during your affiliation with Charleston Naval Shipyard Federal Credit Union. This prohibition is effective immediately upon service. In accordance with Section 206(g)(7)(A) of the Federal Credit Union Act, 12 U.S.C. §1786(g)(7)(A), this Order shall constitute a prohibition from further participation in any manner in the affairs of any federally insured financial institution, or other entity identified therein, without the written permission of the appropriate federal regulatory agency. This Order has been issued based upon the following information.
You pleaded guilty to one count of Title 18, United States Code, Section 1006, unlawful participation in a credit union loan. You were sentenced on February 25, 1998, by the U.S. District Court for the District of South Carolina, to imprisonment for one day, followed by supervised release for three years, and ordered to pay a fine in the amount of $1,000. A copy of the Judgment in a Criminal Case, dated February 26, 1998, is attached to this Order as Attachment 1 and is incorporated by reference herein. Because an appeal has not been filed within the time specified by the Federal Rules of Appellate Procedure, your conviction is now final.
The offense of which you were convicted, unlawful participation in a credit union loan, was committed while you were employed as the vice-president of commercial lending at the Charleston Naval Shipyard Federal Credit Union of Charleston, South Carolina. The information to which you pleaded guilty alleges that on or about December 12, 1990 and February 19, 1991, you participated in the approval of two loans, in the amount of $132,000 and $170,000, from the credit union to a Randolph C. Evans. However, you actually received the proceeds from these two loans and used them for your own commercial ventures and for other personal uses. Such action was in direct violation of NCUA's regulations and the credit union's commercial lending policy, which you helped draft. At the time of your criminal actions, Charleston Naval Shipyard Federal Credit Union was a federally-chartered credit union.
The offense to which you pleaded guilty involves
personal dishonesty and breach of trust. Your continued participation
in the affairs of any federally insured credit union may pose
a threat to the interests of credit union members and may threaten
to impair public confidence in the credit union involved.
Pursuant to Section 206(i)(3), of the Federal
Credit Union Act, 12 U.S.C. §1786(i)(3), you may request
in writing, within thirty days of service of this Order, an opportunity
for a hearing at which you may present evidence and argument that
your continued participation in the affairs of any federally insured
credit union would not, or would not be likely to, pose a threat
to the interests of that credit union's members or threaten to
impair public confidence in the credit union. Any such request
should be sent to: Secretary of the Board, National Credit Union
Administration, 1775 Duke Street, Alexandria, VA 22314-3428.
This hearing will be held in the Washington, D.C. metropolitan
area, or such other place as designated by the Board, in accordance
with Subpart D of Part 747 of NCUA's Rules and Regulations, 12
C.F.R. §747.301 et. seq.
Pursuant to Section 206(k)(2) of the Federal
Credit Union Act, 12 U.S.C. §1786(k)(2), any violation of
this Order may subject you to a Civil Money Penalty of up to $1,000,000.00
a day for each day said violation continues. In addition, pursuant
to Section 206(l) of the Federal Credit Union Act, 12 U.S.C.
§1786(l), any violation of this Order is a felony offense
that is punishable by imprisonment of up to five years and a fine
of up to $1,000,000.00.
This is to certify that I have served the foregoing
Order of Prohibition in the Matter of James Gary Early, by depositing
the same with the U.S. Postal Service, certified mail, return
receipt requested, addressed to James Gary Early, 122 Live Oak
Drive, Mount Pleasant, SC 29464.
__8/18/98______ ______--S--________________
Date Allan H. Meltzer
Associate General Counsel