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UNITED
BOARD
OF GOVERNORS
STATES
OF AMERICA
BEFORE
THE
OF THE FEDERAL
WASHINGTON.
JOHN
Docket
97-002-E-I
97-002-CMP-I
Combined Order of
Prohibition
and
Assessment
of a Civil Money
Penalty,
Issued Pursuant
to the Federal Deposit
Insurance Act, as Amended
A Former Employee and
Institution-Affiliated
Party of
A Former
Nos.
of
E. COLLEY
TRUSTCO BANK
Schenectady,
SYSTEM
DC
---X
In the Matter
RESERVE
NEW
New
State
YORK
York
Member
Bank
---f,
WHEREAS,
pursuant
of the Federal
Deposit
55 1818(e)
1818(i))
and
of the Federal
this
combined
Money
Penalty
in Section
of Trustco
Bank
fiduciary
the
sale
customers,
belonging
System
3(u)
New York,
duty
relating
of numismatic
and
Schenectady,
and
coins
the custodial
to a Trustco
trust
of Governors
of John
E. Colley
(12 U.S.C.
New
York
and a member
alleged
its customers
to certain
customer;
and
party,
§ 1813(u))
("Trustco"),
of the
Federal
breaches
of his
in connection
of Trustco's
arrangements
issues
of a Civil
institution-affiliated
to Colley's
to Trustco
(12 U.S.C.
of Governors")
and Assessment
of the FDI Act
bank
8(i)
the Board
the consent
and
and
as amended
(the "Board
upon
employee
a State-chartered
System,
8(e)
(the "FDI Act"),
(the "Order")
as defined
Reserve
Act,
of Prohibition
("Colley") , a former
formerly
Insurance
Reserve
Order
to Sections
for a coin
with
trust
collection
WHEREAS,
has
consented
Governors
of this
and
consented
a notice
of assessment
the purpose
implied
or set
of this
Order
contest
in any
of a civil
of taking
forth
collectibility
provision
hereof;
NOW,
or adjudication
herein,
any
allegation
connection
hearings
this
made
with
of settlement
or
this
to any
matter
judicial
review
of this
Order
or any
of any testimony
of fact
or law
of
by the Board
of Governors
in
proceeding
solely
without
or
effec-
an admission
and
for the purpose
protracted
or extended
or testimony:
to Section
8(e)
Colley,
of Governors
ORDERED,
where
prior
written
necessary
Section
8(e) (7) (B) of the FDI Act
another
Federal
financial
hereby
agrees
that,
of the FDI Act:
without
and,
and Colley
(12 U.S.C.
institution
not:
2
approval
pursuant
of the
to
5 1818(e) (7) (B)),
regulatory
of
(b) to a hearing
validity,
issue
and
constituting
proceeding,
of this
1.
Board
Order
or otherwise
(d) to challenge
to the taking
on any
implied
IT IS HEREBY
pursuant
prior
of or finding
and without
and
issuance,
have
and of hearing
respect
or enforceability
THEREFORE,
263,
(c) to obtain
hereof;
the basis,
tiveness,
Part
of
provision
he might
penalty;
with
Order;
or any provision
matter
money
evidence
in this
and every
all rights
of charges
colley
by the Board
each
or 12 C.F.R.
of a notice
hereunder,
Order
with
any and
§ 1818
signature
of this
to comply
and waived
issuance
his
issuance
to 12 U.S.C.
(a) to the
for
to the
Order,
pursuant
by affixing
agency,
shall
(a)
of the
affairs
Section
Participate
of any
in any manner
institution
or agency
8ie) 17) (Ai of the FDI Act
including,
but
not
assigns,
or any
company
thereof;
limited
other
transfer,
vote
authorization
institution
or attempt
with
to vote
respect
described
procure,
§ 1818(e) (7) (A)),
institution
transfer,
any proxy,
to any voting
in Section
in
its successors
depositary
solicit,
(b)
conduct
specified
(12 U.S.C.
to, Trustco,
insured
in the
or
or holding
attempt
consent,
rights
to
or
in any
8(e) (7) (A) of the FDI
Act;
violate
(c)
approved
by any Federal
banking
vote
(d)
institution
such
2.
Section
pay
8(i)
that
System"
payable
and
to William
of the
the
time
"Board
forwarded
Federal
in Section
or employee
ORDERED,
Colley
pursuant
is assessed
sum of $40,000
assessed
at the
to the
W. Wiles,
or acting
3(u)
as
of
in any
to
and
shall
for alleged
duty.
The penalty
in full,
or serving
8(e) (7) (A) of the FDI Act.
of the FDI Act,
3.
Order,
director
FURTHER
of Governors
previously
or
as defined
in Section
of fiduciary
be remitted
party,
IT IS HEREBY
to the Board
breaches
agency;
as an officer,
described
agreement
for a director,
an institution-affiliated
the FDI Act,
any voting
with
Colley's
System,
to this
of Colley's
of Governors
Secretary
Reserve
pursuant
execution
copy
of the Board,
3
DC
Board
shall
of this
of the Federal
executed
Washington,
Order
Reserve
of this
Order,
of Governors
20551.
The
Board
of Governors
United
shall
States
the payment
as required
4.
sent
remit
All
to the Treasury
of the
by statute.
communications
regarding
this
Order
shall
be
to:
Robert A. O'Sullivan
Senior Vice President
Federal Reserve Bank
of New York
33 Liberty Street
New York, NY
10045
(a)
and
a copy
to:
James J. Hilton, Esq
Legal Department
Federal Reserve Bank
of New York
33 Liberty Street
New York, NY
10045
John E. Colley
c/o William Dreyer, Esq.
Dreyer Boyajian,
LLP
75 Columbia Street
Albany, NY
12210
(b)
Any
5.
subject
under
Colley
Section
violations
to appropriate
8(i)
6.
and
The provisions
prevent
state
or department
Colley,
take
any
provided,
action
presently
known
addressed
by this
shall
or criminal
of this
the Board
however,
further
7.
civil
order
separately
penalties
or both
Cj) of the FDI Act
or otherwise
agency
of this
Order
of Governors,
from
taking
that
the Board
against
by the Board
shall
or any
any other
Colley
upon
relating
estop,
federal
action
of Governors
based
of Governors
not bar,
or
affecting
shall
not
information
to the matters
Order
Each
provision
effective
and enforceable
suspended
in writing
of this
until
Order
stayed,
by the Board
4
shall
modified,
of Governors.
remain
terminated
OL
By order
Reserve
System,
of the Board
effective
of Governors
this 3 d
day
of
of the Federal
/-%--JJYI,
/
, 1998.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
By:
Jofy
v
E. Colley
CI
I
)!,A
William W. Wiles
Secretary
of the
Board