The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
_________________________________________
ON CERTIFICATION OF THE DEPARTMENT
OF THE TREASURY--OFFICE OF THE
COMPTROLLER OF THE CURRENCY
)
)
)
)
)
In the Matter of a Notice to
Prohibit Further Participation
Against SAMMIE R. GOLDEN,
)
)
)
)
Former Employee,
)
UNION PLANTERS NATIONAL BANK,
)
Memphis, Tennessee
)
_________________________________________ )
DOCKET NO. OCC-AA-EC-00-25
FINAL DECISION
This is an administrative proceeding pursuant to the Federal Deposit Insurance Act (AFDI
Act@) in which the Office of the Comptroller of the Currency of the United States of America
("OCC") seeks to prohibit the Respondent, Sammie R. Golden ("Respondent"), from further
participation in the affairs of any financial institution because of her conduct as an employee of
Union Planters National Bank, Memphis, Tennessee (the ABank@). Under the FDI Act, the OCC
may initiate a prohibition proceeding against a former employee of a national bank, but the Board
must make the final determination whether to issue an order of prohibition.
Upon review of the administrative record, the Board issues this Final Decision adopting
the Recommended Decision ("RD") of Administrative Law Judge Arthur L. Shipe (the AALJ@),
and orders the issuance of the attached Order of Prohibition.
2
I. STATEMENT OF THE CASE
A. Statutory and Regulatory Framework
Under the FDI Act and the Board's regulations, the ALJ is responsible for conducting
proceedings on a notice of charges. 12 U.S.C. ' 1818(e)(4). The ALJ issues a recommended
decision that is referred to the deciding agency together with any exceptions to those
recommendations filed by the parties. The Board makes the final findings of fact, conclusions of
law, and determination whether to issue an order of prohibition in the case of prohibition orders
sought by the OCC. Id.; 12 C.F.R. ' 263.40.
The FDI Act sets forth the substantive basis upon which a federal banking agency may
issue against a bank official or employee an order of prohibition from further participation in
banking. In order to issue such an order, the Board must make each of three findings: 1) that the
respondent engaged in identified misconduct, including a violation of law or regulation, an unsafe
or unsound practice or a breach of fiduciary duty; 2) that the conduct had a specified effect,
including financial loss to the institution or gain to the respondent; and 3) that the respondent=s
conduct involved either personal dishonesty or a willful or continuing disregard for the safety or
soundness of the institution. 12 U.S.C. ' 1818(e)(1)(A)-(C).
An enforcement proceeding is initiated by the filing of a notice of charges which is served
on the respondent. Under the OCC's and the Board's regulations, the respondent must file an
answer within 20 days of service of the notice. 12 C.F.R. '' 19.19(a) and 263.19(a). The
answer must “fairly meet the substance of each allegation of fact denied; general denials are not
permitted.” 12 C.F.R. §§ 19.19(b) and 263.19(b). Failure to file an answer constitutes a waiver
3
of the respondent's right to contest the allegations in the notice, and a final order may be entered
unless good cause is shown for failure to file a timely answer. 12 C.F.R. '' 19.19(c)(1) and
263.19(c)(1).
B. Procedural History
On April 6, 2000, the OCC issued a Notice initiating an enforcement action that
sought an order of prohibition due to Respondent's actions in assisting a customer, for a gratuity,
in cashing twelve stolen and forged checks totaling over $7000. Respondent filed a timely
answer, but failed to provide specific responses to the factual allegations in the Notice.
Enforcement Counsel then moved to require Respondent to provide a more specific answer to the
Notice. Respondent did not oppose the motion, and the ALJ ordered that an amended answer be
filed by July 25, 2000.
Respondent failed to file an amended answer, and instead, through counsel, withdrew
her previous request for a hearing and indicated her consent to the entry of a prohibition order.
Enforcement Counsel moved for entry of a default order on the basis of Respondent’s failure to
file a timely amended answer. Respondent filed no reply to the motion, and in a telephonic
prehearing conference appeared through counsel and consented again to the entry of a default
order. Counsel indicated, however, that Respondent would decline to enter into any stipulated
settlement of the proceeding.
4
Following the telephonic conference, the ALJ issued a Recommended Decision finding
Respondent in default and adopting as his factual findings the allegations in the Notice. On the
basis of those findings, the ALJ recommended that an order of prohibition be entered against the
Respondent.
II. DISCUSSION
The OCC's Rules of Practice and Procedure set forth the requirements of an answer
and the consequences of a failure to file an answer to a Notice. Under the Rules, an answer “must
fairly meet the substance of each allegation of fact denied; general denials are not permitted.” 12
C.F.R. § 19.19(b). Failure to file a timely answer "constitutes a waiver of [a respondent's] right to
appear and contest the allegations in the Notice." 12 C.F.R. § 19.19(c). If the ALJ finds that no
good cause has been shown for the failure to file, the judge "shall file . . . a recommended decision
containing the findings and the relief sought in the notice." Id. An order based on a failure to file
a timely answer is deemed to be issued by consent. Id.
In this case, Respondent’s initial answer did not comply with the requirement that an
answer meet the substance of each allegation of fact denied. Rather, the answer contained only a
general denial. Following Enforcement Counsel’s unopposed motion to require an amended
answer, the ALJ required Respondent to file an amended answer that complied with the
requirements of the OCC’s Rules. Respondent’s failure to file an amended answer constitutes a
default.
Respondent's default requires the Board to consider the allegations in the Notice as
uncontested. Those allegations meet all the criteria for entry of an order of prohibition under 12
5
U.S.C. § 1818(e). Respondent's conduct in assisting a customer to cash over $7000 in stolen and
forged checks, and in accepting a gratuity for such assistance, meets the "misconduct" prong of
the prohibition statute, 12 U.S.C. § 1818(e)(1)(A), being both a violation of law and an unsafe or
unsound practice. The action had the necessary "effect" of gain to the Respondent, as well as loss
to the Bank, under 12 U.S.C. § 1818(e)(1)(B). Finally, the conduct involved the requisite
culpability under 12 U.S.C. § 1818(e)(1)(C) in that it involved personal dishonesty. The
requirements for an order of prohibition having been met, the Board has determined that such an
order will issue.
CONCLUSION
For these reasons, the Board orders the issuance of the attached Order of Prohibition.
By Order of the Board of Governors, this
day of _________, 2000.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
_______________________________
Jennifer J. Johnson
Secretary of the Board
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.
_________________________________________
)
ON CERTIFICATION OF THE DEPARTMENT
OF THE TREASURY--OFFICE OF THE
COMPTROLLER OF THE CURRENCY
)
)
)
)
In the Matter of a Notice to
Prohibit Further Participation
Against SAMMIE R. GOLDEN,
)
)
)
)
Former Employee,
)
UNION PLANTERS NATIONAL BANK
)
Memphis, Tennessee
)
_________________________________________ )
DOCKET NO. OCC-AA-EC-00-25
ORDER OF PROHIBITION
WHEREAS, pursuant to section 8(e) of the Federal Deposit Insurance Act, as amended,
(the "Act")(12 U.S.C. ' 1818(e)), the Board of Governors of the Federal Reserve System ("the
Board") is of the opinion, for the reasons set forth in the accompanying Final Decision, that a final
Order of Prohibition should issue against SAMMIE R. GOLDEN (“GOLDEN”),
NOW, THEREFORE, IT IS HEREBY ORDERED, pursuant to section 8(e) of the
Federal Deposit Insurance Act, as amended, (12 U.S.C. ' 1818(e)), that:
1. In the absence of prior written approval by the Board, and by any other Federal
financial institution regulatory agency where necessary pursuant to section 8(e)(7)(B) of the Act
(12 U.S.C. ' 1818(e)(7)(B)), Golden is hereby prohibited:
2
(a) from participating in the conduct of the affairs of any bank holding
company, any insured depository institution or any other institution specified in subsection
8(e)(7)(A) of the Act (12 U.S.C. ' 1818(e)(7)(A));
(b) from soliciting, procuring, transferring, attempting to transfer, voting or
attempting to vote any proxy, consent, or authorization with respect to any voting rights in any
institution described in subsection 8(e)(7)(A) of the Act (12 U.S.C. ' 1818(e)(7)(A));
(c) from violating any voting agreement previously approved by the
appropriate Federal banking agency; or
(d) from voting for a director, or from serving or acting as an institutionaffiliated party as defined in section 3(u) of the Act, (12 U.S.C. ' 1813(u)), such as an officer,
director, or employee.
2. This Order, and each provision hereof, is and shall remain fully effective and
enforceable until expressly stayed, modified, terminated or suspended in writing by the Board.
This Order shall become effective at the expiration of thirty days after service is made.
By Order of the Board of Governors, this _____ day of ____________, 2000.
BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM
__________________________________
Jennifer J. Johnson
Secretary of the Board