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For immediate release
October 10, 1997
The Federal Reserve Board today announced the issuance
of an Order of Removal and of Prohibition against
Gregory D. Cannon, a current officer and institution-affiliated
party of the University Bank, Ann Arbor, Michigan, a state
nonmember bank, and a former officer and institution-affiliated
party of the Bank of Lenawee, Adrian, Michigan, a state member
bank.
Mr. Cannon, without admitting to any allegations,
consented to the issuance of the Order based on his alleged
misapplication
of funds from the Lenawee Bank.
The Order was issued jointly with the Federal Deposit
Insurance Corporation.
A copy of the Order is attached.
Attachment
r
UNITED
STATES
OF AMERICA
BEFORE
BOARD
OF GOVERNORS
FEDERAL
THE
OF THE
DEPOSIT
FEDERAL
INSURANCE
WASHINGTON,
In the Matter
GREGORY
of
Docket
Nos.
FDIC-97-37(e)
;
Bank,
Michigan
97-019-E-I
and
Order of Removal and of
Prohibition
Issued Upon
Consent
i
University
Ann Arbor,
CORPORATION
!
An Institution-Affiliated
Party of
SYSTEM
D.C.
1
D. CANNON
RESERVE
;
)
and
,’
1
A Former Institution-Affiliated
Party of
;
Bank of Lenawee,
Adrian, Michigan
i
1
WHEREAS,
the Federal
(12 U.S.C.
Deposit
1818(e)
Federal
Reserve
Deposit
Insurance
consent
Order
Gregory
D. Cannon
Insurance
and
System
of Removal
1813(u) 1,
Bank"),
8(e)
as amended
a current
in section
(i) (3) of
(the "FDI Act")
of Governors")
(the ‘FDIC")
and
of Governors
and
jointly
and of Prohibition
as defined
(12 U.S.C.
Act,
(the "Board
("Cannon'),
party,
to sections
(i) (3)), the Board
Corporation
affiliated
("University
pursuant
the Federal
issue
this
(the "Order")
officer
3(u)
of the
and
institution-
of the FDI Act
of the University
Bank,
Ann Arbor,
a state
bank,
and a former
nonmember
against
Michigan
officer
and
institution-affiliated
Michigan
("Lenawee
alleged
misapplication
has
of funds
consented
of Governors
might
Part
and
otherwise
263,
a notice
forth
12 C.F.R.
forth
THEREFORE,
or implied
with
settlement
of this proceeding
hearings
judicial
the taking
issue
of
or set
of this Order
in any
effectiveness
or
hereof.
of any testimony
or
of fact or law implied
in
for the purpose
protracted
or
any allegation
or the FDIC
and solely
without
implied
or contest
or denying
of Governors
12 C.F.R.
review
terms,
admitting
this proceeding,
or testimony:
he
(b) to a hearing
on any matter
or any provision
before
connection
by the Board
any and all rights
to prohibit;
validity,
the Board
hereunder,
of this Order
(d) to challenge
and without
by
signature
and
(a) to the issuance
of or ,finding on any
herein,
his
Bank;
on his
or otherwise
(c) to obtain
issuance,
based
1818,
evidence
and
bank,
Adrian,
to 12 U.S.C.
and
of this Order
NOW,
adjudication
308,
to remove
hereof;
the basis,
enforceability
made
Part
in this Order;
manner
set
pursuant
of Lenawee,
the Lenawee
and has waived
of taking
or any provision
from
to the issuance
have
for the purpose
member
by affixing
the FDIC
of intent
of the Bank
Bank") I a state
WHEREAS,
Cannon
party
or extended
of
IT IS HEREBY
and
(j) of the FDI Act
affiliated
party
is hereby
of Governors,
removed
without
the FDIC,
another
federal
hereby
and henceforth
section
of any institution
8(e)(7)(A)
including,
but not
or any bank
or savings
(b)
attempting
consent,
any
or
authorization
institution
described
(cl
approved
by any
or agency
association
to transfer,
voting
with
federal
banking
pursuant
agency,
to
is
to vote
to any voting
any voting
agency;
institution
transferring,
or attempting
3
1818(e)(7)(A)),
company;
procuring,
By
of
in
depository
holding
respect
in the conduct
specified
(12 U.S.C.
in section
violating
of the
1818(e) (7) (B)),
regulatory
to, any insured
soliciting,
approval
necessary
in any manner
of the FDI Act
limited
Cj)), that:
from:
(a) Participating
the affairs
written
(12 U.S.C.
institution
prohibited
(i) (3) and
(i)(3)
Bank.
and, where
8(e)(7) (B) of the FDI Act
8(e),
as an institution-
the prior
section
financial
to sections
1818(e),
of the University
Cannon,
2.
Board
(12 U.S.C.
Cannon
1.
pursuant
ORDERED,
any proxy,
rights
in
(7) (A) of the FDI Act;
agreement
or
previously
(d)
voting
for a director,
as an institution-affiliated
or employee,
party,
in any institution
such
or serving
or acting
as an officer,
described
in section
director
8(e) (7) (A)
of the FDI Act.
3.
subject
under
and
Any violation
Cannon
sections
of this Order
to appropriate
8(i) and
civil
shall
or criminal
Cj) of the FDI Act
separately
penalties
(12 U.S.C.
or both
1818(i)
(j)).
is and
4.
This
shall
remain
Order,
fully
expressly
stayed,
the Board
of Governors
5.
addressed
All
modified,
and
and each
effective
and every
provision
and enforceable
terminated
or suspended
hereof,
until
in writing
the FDIC.
communications
regarding
this Order
shall
to:
(a)
Mr. John J. Wixted
Senior Vice President
Federal Reserve Bank of Chicago
230 South LaSalle Street
60690
Chicago, Illinois
(b)
Mr. Robert E. Feldman
Executive Secretary
Federal Deposit Insurance
550 17th Street, N.W.
Room F-4076
Washington,
D.C. 20249
4
Corporation
be
by
Cc)
6.
or otherwise
federal
action
Mr. Gregory D. Cannon
516 West Adrian Street
Blissfield,
Michigan
43228
The provisions
prevent
or state
affecting
the Board
agency
shall
of Governors,
or department
from
not bar,
the FDIC,
taking
estop,
or any
any other
Cannon.
By order
day
of this Order
of the Board
of/!Td,5-?
of Governors
effective
this
1997.
,
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
/J_LLL
By:
William W. Wiles
Secretary
of the Board
By order
this
1st
of the FDIC pursuant
day
of
October
to delegated
authority
, 1997.
FEDERAL
DEPOSIT INSURANCE
CORPORATION
By:
K ith W. Seibold
Acting Associate
Director
Division of Supervision
5