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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