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For immediate
May
release
The Federal
of consent
Orders
L. Riddle,
Ducote,
former
Inc.,
Dallas,
admitting
Riddle,
Averett,
in settlement
of charges
1995.
Those
alleged
Control
participated
Act
acquisition
between
1990
The Board's
Mr. Averett
pay civil
that Mr.
and that Mr.
Ducote
Copies
Attachments
Orders
money
Jones
pay
of the
in December
by other
Jones,
in Bank
to the
individuals
1991.
that Mr.
a civil
a civil
without
Averett,
related
Bancorp
penalties
of the Board's
Riddle,
of
company.
issuance
of the Change
require
pay
Bancorp
and Ducote,
the financing
and February
against
by the Board
Messrs.
of Provident
of control
December
aggregate,
with
Penalties
holding
to the
brought
that
issuance
and T. Stuart
a bank
Jones,
1997
the
of Provident
in violations
in connection
Money
consented
Orders
announced
Jones,
formerly
to any allegations,
and Ducote
Park
and directors
Texas,
charges
today
of Civil
John Averett,
officers
Messrs.
Board
of Assessment
Michael
Texas,
Reserve
22,
money
Orders
Riddle
of $100,000
money
in the
penalty
penalty
and
of $20,000,
of $1,500.
are attached.
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON. D.C.
Docket Nos.
In the Matter of
j
95-042-B-11
95-042-B-12
95-042-CMP-11
95-042-CMP-I2
MICHAEL L. RIDDLE,
A former institutionaffiliated party of Provident)
Bancorp of Texas, Inc.
)
,’
JOHN AVERETT
A former institutionI
affiliated party of Provident)
Bancorp of Texas, Inc.
;
Order of Assessment of
Civil Money Penalties Issued
Upon Consent Pursuant to the
Federal Deposit Insurance Act,
as Amended (the "FDI Act")
1
WHEREAS, pursuant to sections 7(j) and 8(i) of the FDI
Act, 12 U.S.C. §§ 1817(j) & 1818(i), the Board of Governors of
the Federal Reserve System (the "Board of Governors")
consent Order of Assessment of Civil Money Penalties
"Consent Order") against Michael L. Riddle
Averett
issues this
(the
("Riddle") and John
("Averett"), former institution-affiliated
parties of
Provident Bancorp of Texas, Inc., Dallas, Texas, formerly a
registered bank holding company;
WHEREAS, the Board of Governors, on December 8. 1995,
issued a combined Notice of Charges and of Hearing and Notice of
Assessment of Civil Money Penalties
(the "December 8, 1995
Notice") against Riddle, Averett, and others which alleges that
- 2 they and others participated
in alleged violations of the Change
in Bank Control Act, 12 U.S.C. § 1817(j), in connection with the
financing related to the acquisition of control of Provident
Bancorp by Donald R. Horton and others between December 1990 and
February 1991;
WHEREAS, Riddle and Averett, without admitting any of
the allegations contained in the December 8, 1995 Notice, and to
avoid protracted and extended proceedings, hereby respectively
consent as set forth herein to an order of assessment of civil
money penalties pursuant to sections 7(j) and 8(i) of the FDI
Act, 12 U.S.C. 55 1817(j) & 1818(i), in settlement of all charges
contained in the December 8, 1995 Notice;
WHEREAS, this Consent Order resolves the proceedings
initiated by the December 8, 1995 Notice against Riddle and
Averett; and
WHEREAS, by affixing their signatures hereunder, Riddle
and Averett have consented to the issuance of this Consent Order
by the Board of Governors, and have waived any and all rights
they might otherwise have pursuant to 12 U.S.C. §§ 1817 & 1818,
12 C.F.R. Part 263 or otherwise
(a) to a hearing for the purpose
of taking evidence with respect to any matter implied or set
forth in the December 8, 1995 Notice or in this Consent Order;
(b) to obtain judicial review of this Consent Order; and (c) to
- 3 challenge or contest in any manner the basis, issuance, validity,
effectiveness,
collectability or enforceability of this Consent
Order or any provision hereof.
NOW, THEREFORE, before the taking of any testimony or
adjudication of, or finding on, any issue of fact or law implied
herein, and without this Consent Order constituting an admission
by Riddle and Averett of any allegation made or implied by the
Board of Governors in connection with this proceeding, and solely
for the purpose of settlement of this proceeding and to avoid
protracted or extended proceedings:
IT IS HEREBY ORDERED that pursuant to sect ions 7(j) and
8(i) of the FDI Act
(12 U.S.C. §§ 1817(j) & 1818(i)), and
section 263.63(a) of the Board of Governors' Rules of Practice
(12 C.F.R. 5 263.63(a)) that:
1.
Riddle and Averett are assessed and shall forfeit
and pay civil money penalties in the aggregate amount of
$100,000, such payments to be made on or before September 30,
1997.
2.
The penalties assessed by this Consent Order shall
be remitted in full, payable to the "Board of Governors of the
Federal Reserve System", and shall be forwarded to William W.
Wiles, Secretary of the Board, Board of Governors of the Federal
-
4
-
Reserve System, Washington, DC 20551, who shall make remittance
of the same to the Treasury of the United States as required by
statute.
3.
If any civil money penalty amount is not remitted
with the execution of this Consent Order, collateral in a form
and amount acceptable to the Board of Governors shall be pledged
to the Board of Governors upon the execution of this Consent
Order, which pledge shall remain until the full civil penalty
amount is paid.
The Board of Governors may liquidate the pledged
collateral, pursuant to the terms by which it is pledged, if the
aggregate civil money penalty amount set forth in Paragraph 1
above is not paid on or before September 30, 1997, and apply the
proceeds of the liquidation of such collateral to payment of the
aggregate civil money penalty amount.
4.
All communications
regarding this Consent Order
shall be sent to:
With regard to the Board of Governors:
a.
Robert Hankins
Senior Vice President
Federal Reserve Bank of Dallas
P.O. Box 655906
Dallas, Texas 75265
With regard to Riddle:
b.
Bruce Heitz, Esq.
1408 W. Abram
Arlington, TX 76013, and
c.
5
-
Jay Madrid, Esq.
Madrid, Corallo & Brooks, P.C.
8150 N. Central Expressway,
Suite 1700
Dallas, TX 75206
With regard to Averett:
d.
5.
John Averett
3642 Overbrook Ln.
Houston, TX 77027
Each provision of this Consent Order shall remain
effective and enforceable until stayed, modified, terminated or
suspended by the Board of Governors.
6.
The provisions
of this Consent Order shall not
bar, estop or otherwise prevent the Board of Governors, or any
federal or state agency or department, from taking any other
action affecting Riddle or Averett, including actions to enforce
the terms of this Consent Order; provided, however, the Board of
Governors agrees that it shall not seek any other civil or
- 6 administrative
proceeding
to or arising
out of any
prior
to the issuance
By order
Reserve
System,
against
facts
Riddle
known
of the December
of the Board
effective
this
or Averett
to the Board
with
respect
of Governors
8, 1995 Notice.
of Governors
of the Federal
/ ?Cq
day Of-l
lgg7
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
By:
William W. Wiles
Secretary
of the Board
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS 3F THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
Docket Nos.
In the Matter of
95-042-CMP-13
1
)
PARK JONES
i
A former institution)
affiliated party of Provident)
Bancorp of Texas, Inc.
)
Order of Assessment of
Civil Money Penalties Issued
Upon Consent Pursuant to the
Federal Deposit Insurance Act,
as Amended (the "FDI Act")
i
WHEREAS, pursuant to sections 7(j) and E(i) of the FDI
Act, 12 U.S.C. §§ 1817(j) & 1818(i), the Board of Governors of
the Federal Reserve System
(the "Board of Governors") issues this
consent Order of Assessment of Civil Money Penalties
(the
"Consent Order") against Park Jones ("Jones"), a former
institution-affiliated
party of Provident Bancorp of Texas, Inc.,
Dallas, Texas, formerly a registered bank holding company;
WHEREAS, the Board of Governors, on December 8, 1995,
issued a combined Notice of Charges and of Hearing and Notice of
Assessment of Civil Money Penalties, as amended April 22, 1997
(the "December 8, 1995 Notice") against Jones, and others which
alleges that they and others participated in alleged violations
of the Change in Bank Control Act, 12 U.S.C. § 1817(j), in
connection with the financing related to the acquisition of
- 2 control
of Provident Bancorp by Donald R. Horton and other
members of his family between December 1990 and February 1991;
WHEREAS, Jones,
without admitting any of the
allegations contained in the December 8, 1995 Notice, and to
avoid costly, protracted and extended proceedings, hereby
consents as set forth herein to an order of assessment of civil
money penalties pursuant to sections 7(j) and 8(i) of the FDI
Act, 12 U.S.C. 55 1817(j) & 1818(i), in settlement of all charges
contained in the December 8, 1995 Notice;
WHEREAS, this Consent Order resolves the proceedings
initiated by the December 8, 1995 Notice against Jones; and
WHEREAS, by affixing his signature hereunder, Jones has
consented to the issuance of this Consent Order by the Board of
Governors, and has waived any and all rights he might otherwise
have pursuant to 12 U.S.C. §§ 1817 & 1818, 12 C.F.R. Part 263 or
otherwise
(a) to a hearing for the purpose of taking evidence
with respect to any matter implied or set forth in the December
8, 1995 Notice or in this Consent Order; (b) to obtain judicial
review of this Consent Order; and (c) to challenge or contest in
any manner the basis, issuance, validity, effectiveness,
collectability or enforceability
provision hereof.
of this Consent Order or any
- 3 NOW, THEREFORE, before the taking of any testimony or
adjudication of, or finding on, any issue of fact or law implied
herein, and without this Consent Order constituting an admission
by Jones of any allegation made or implied by the Board of
Governors in connection with this proceeding, and solely for the
purpose of settlement of this proceeding and to avoid protracted
or extended proceedings:
IT IS HEREBY ORDERED that pursuant to sections 7(j) and
8(I) of the FDI Act 112 U.S.C. §§ 1817(j) & 1818(i)), and
section 263.63(a) of the Board of Governors' Rules of Practice
(12 C.F.R. 5 263.63(a)) that:
1.
a.
Jones is assessed and shall forfeit and pay a
civil money penalty in the amount of $20,000.
b.
No portion of Jones' civil money penalty shall
be, directly or indirectly, paid, advanced, reimbursed or
otherwise funded by Provident Bank, Dallas, Texas, or any
successors or assigns.
2.
The penalty assessed by this Consent Order shall
be remitted in full, payable to the "Board of Governors of the
Federal Reserve System", and shall be forwarded to William W.
Wiles, Secretary of the Board, Board of Governors of the Federal
Reserve System, Washington, DC 20551, who shall make remittance
-
4
-
of the same to the Treasury of the United States as required by
statute.
3.
All communications regarding this Consent Order
shall be sent to:
With regard to the Board of Governors:
b.
Robert Hankins
Senior Vice President
Federal Reserve Bank of Dallas
P.O. BOX 655906
Dallas, Texas 75265
With regard to Jones:
c.
4.
Mark Johansen, Esq.
Crotty & Johansen, L.L.P.
2311 Cedar Springs Rd. Suite 250
Dallas, TX 75201
Each provision of this Consent Order shall remain
effective and enforceable until stayed, modified, terminated or
suspended by the Board of Governors.
5.
The provisions of this Consent Order shall not
bar, estop or otherwise prevent the Board of Governors, or any
federal or state agency or department, from taking any other
action affecting Jones, including actions to enforce the terms of
this Consent Order; provided, however, the Board of Governors
agrees that it shall not seek any other civil or administrative
-
5
-
proceeding against Jones with respect to or arising out of any
facts known to the Board of Governors prior to the issuance of
this Consent Order
By order of the Board of Governors of the Federal
Reserve System, effective this
/?%ay
of /6?Q
, 1997.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
By:
William W. Wiles
Secretary of the Board
UNITED
BEFORE
THE
BOARD
STATES
OF GOVERNORS
OF AMERICA
OF THE FEDERAL
WASHINGTON,
SYSTEM
D.C.
Docket
In the Matter
RESERVE
Nos.
95-042-CMP-14
95-042-B-13
of
)
T. STUART DUCOTE
A former institution)
affiliated
party of Provident)
Bancorp of Texas, Inc.
Order of Assessment
of
Civil Money Penalty Issued
Upon Consent Pursuant to the
Federal Deposit Insurance Act,
as Amended
(the "FDI Act")
;
)
WHEREAS,
Act,
12 U.S.C.
the Federal
pursuant
§§ 1817(j)
Reserve
consent
Order
Order")
against
T. Stuart
Texas,
Notice")
others
Notice
Ducote,
participated
Control
financing
Act,
Money
related
Money
of Provident
bank
of Governors,
of Governors
Penalty
of
issues
this
(the "Consent
a former
Bancorp
of Texas,
holding
company;
on December
Inc.,
8, 1995,
of Charges
and of Hearing
and Notice
Penalties
(the "December
8, 1995
and others
in alleged
12 U.S.C.
and 8(i) of the FDI
of Governors")
("Ducote"),
a registered
the Board
of Civil
against
Ducote
party
formerly
a combined
Assessment
of Civil
7(j)
the Board
(the "Board
of Assessment
WHEREAS,
issued
& 1818(i),
System
institution-affiliated
Dallas,
to sections
which
violations
5 1817(j),
alleges
they
of the Change
in connection
to the acquisition
that
of control
with
of
and
in Bank
the
of Provident
-2
Bancorp
by Donald
February
R. Horton
allegations
protracted
forth
herein
to an order
1990
consented
of Governors,
proceedings,
hereby
of civil
and
to
consents
money
and 8(i) of the FDI Act,
in settlement
this
Consent
as set
penalty
12 U.S.C.
of all charges
and has waived
pursuant
contained
against
hereunder,
of this Consent
Order
any and all rights
to 12 U.S.C.
§§ 1817
(a) to a hearing
to any matter
Ducote;
Ducote
by the Board
he might
& 1818,
12 C.F.R.
for the purpose
of taking
December
8, 1995 Notice
or in this Consent
Order;
judicial
review
Consent
(c) to challenge
of this
in any manner
the basis,
collectability
or any provision
hereof.
implied
and
with
effectiveness,
in
the proceedings
evidence
Order
respect
resolves
his signature
to the issuance
have
Order
8, 1995 Notice
by affixing
263 or otherwise
contest
and
any of the
8, 1995 Notice,
of assessment
7(j)
by the December
WHEREAS,
Part
December
8, 1995 Notice;
WHEREAS,
otherwise
between
admitting
in the December
& 1818(i),
the December
without
and extended
to sections
§§ 1817(j)
has
Ducote,
contained
avoid
initiated
and others
1991;
WHEREAS,
pursuant
-
Order;
and
issuance,
or set forth
in the
(b) to obtain
or
validity,
or enforceability
of this
Consent
- 3 NOW, THEREFORE, before the taking of any testimony or
adjudication of, or finding on, any issue of fact or law implied
herein, and without this Consent Order constituting an admission
by Ducote of any allegation made or implied by the Board of
Governors in connection with this proceeding, and solely for the
purpose of settlement of this proceeding and to avoid protracted
or extended proceedings:
IT IS HEREBY ORDERED that pursuant to sections 7(j) and
6(i) of the FDI Act
(12 U.S.C. 55 1817(j) & 1818(i)), and
section 263.63(a) of the Board of Governors' Rules of Practice
(1.2C.F.R. § 263.63(a)) that:
1.
Ducote is assessed and shall forfeit and pay a
civil money penalty in the amount of $1,500.
2.
The penalty assessed by this Consent Order shall
be remitted in full, payable to the "Board of Governors of the
Federal Reserve System", and shall be forwarded to William W.
Wiles, Secretary of the Board, Board of Governors of the Federal
Reserve System, Washington, DC 20551, who shall make remittance
of the same to the Treasury of the United States as required by
statute.
- 4 All
3.
shall
be sent
communications
regard
a.
With
4.
to the Board
regard
Harold Ducote, Esq.
Ducote & Associates
940 Southcoast
Drive
Suite 185
Costa Mesa, CA 92626
Each
provision
by the Board
5.
of this
agrees
Consent
that
proceeding
against
modified,
Consent
the Board
or department,
including
Ducote,
it shall
of this
prevent
agency
Order;
stayed,
Order
shall
remain
terminated
or
of Governors.
or otherwise
or state
of this Consent
until
The provisions
affecting
of Governors:
b.
suspended
action
Order
to Ducote:
and enforceable
federal
Consent
Robert Hankins
Senior Vice President
Federal Reserve Bank of Dallas
P.O. Box 655906
Dallas, Texas 75265
effective
estop
this
to:
With
bar,
regarding
provided,
not
Ducote
seek
with
however,
respect
shall
of Governors,
from taking
actions
any other
Order
or any
any other
to enforce
the Board
civil
not
the
terms
of Governors
or administrative
to or arising
out of any
- 5 facts known to the Board of Governors prior to the issuance of
the December 8, 1995 Notice.
By order of the Board of Governors of the Federal
t&
-day
of A&,,
, 1997.
Reserve System, effective this 20
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
I
BY.
T. Stuart Ducote
da-/)
,
CJ
+z-
William W. Wiles
Secretary of the Board