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Enforcement actions.

Assessments of Civil Money Penalties.

The Federal Reserve Board announced on April 21, 2005, the issuance of a consent order of assessment of a civil money penalty against the Irwin Union Bank, Columbus, Indiana, a state member bank. Irwin Union Bank, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires Irwin Union Bank to pay a civil money penalty of $22,300, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

The Federal Reserve Board announced on April 21, 2005, the issuance of a consent order of assessment of a civil money penalty against The Bank, Warrior, Alabama, a state member bank. The Bank, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires The Bank to pay a civil money penalty of $46,050, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

The Federal Reserve Board announced on June 9, 2005, the issuance of a consent order of assessment of a civil money penalty against the Bank of Pontiac, Pontiac, Illinois, a state member bank. The Bank of Pontiac, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires the Bank of Pontiac to pay a civil money penalty of $32,550, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

The Federal Reserve Board announced on June 9, 2005, the issuance of a consent order of assessment of a civil money penalty against the First Bank and Trust Company, Lebanon, Virginia, a state member bank. The First Bank and Trust Company, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires the First Bank and Trust Company to pay a civil money penalty of $7,750, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

The Federal Reserve Board announced on July 6, 2005, the issuance of a consent order of assessment of a civil money penalty against the Frontier Bank, Everett, Washington, a state member bank. Frontier Bank, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires Frontier Bank to pay a civil money penalty of $12,500, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

The Federal Reserve Board announced on July 6, 2005, the issuance of a consent order of assessment of a civil money penalty against the Security Bank, Ralls, Texas, a state member bank. Security Bank, without admitting to any allegations, consented to the issuance of the order in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act.

The order requires Security Bank to pay a civil money penalty of $3,250, which will be remitted to the Federal Emergency Management Agency for deposit into the National Flood Mitigation Fund.

Written Agreements

The Federal Reserve Board announced on April 25, 2005, the execution of a written agreement by and between the Civitas BankGroup, Inc., Franklin, Tennessee, and the Federal Reserve Bank of Atlanta.

The Federal Reserve Board announced on April 29, 2005, the execution of a written agreement by and among Banco Industrial de Venezuela, C.A., Caracas, Venezuela; Banco Industrial de Venezuela, C.A. New York Agency, New York, New York; Banco Industrial de Venezuela, C.A. Miami Agency, Miami, Florida; the New York State Banking Department, New York, New York; the State of Florida Office of Financial Regulation, Tallahassee, Florida; the Federal Reserve Bank of New York; and the Federal Reserve Bank of Atlanta.

The Federal Reserve Board announced on July 14, 2005, the execution of a written agreement by and among the First Citizens Bank of Butte, Butte, Montana; the Montana Division of Banking and Financial Institutions; and the Federal Reserve Bank of Minneapolis.

Final Decisions and Orders

The Federal Reserve Board announced on May 13, 2005, the issuance of a final decision and order of prohibition against Donald K. McKinney, a former vice president of American National Bank, Wichita Falls, Texas. The order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Mr. McKinney from participating in the conduct of the affairs of any financial institution or holding company.

The Federal Reserve Board announced on June 7, 2005, the issuance of a final decision and cease and desist order against eighteen former institution-affiliated parties of First Western Bank, Cooper City, Florida, and an order of prohibition against Carl V. Thomas, one of the former institution-affiliated parties. The orders were the result of an action brought by the Board to address violations of the Change in Bank Control Act in connection with the respondents' acquisition of shares of First Western Bank in 1997 and 1998.

The Federal Reserve Board announced on June 17, 2005, the issuance of an order of prohibition against Frank G. Caton, previously branch manager of the former Farmers Bank of Maryland, Annapolis, Maryland.

Mr. Caton, without admitting to any allegations, consented to the issuance of the order based on his alleged participation in violations of law and breaches of fiduciary duty to the bank and its customers in connection with embezzlement of funds and falsification of the bank's books and records.

The Federal Reserve Board announced on June 28, 2005, the issuance of an order of prohibition and order to cease and desist against Matthew T. Stromgren, a former financial adviser at J.P. Morgan Chase and Company, New York, New York.

Mr. Stromgren, without admitting to any allegations, consented to the issuance of the order based on his alleged participation in violations of law and breaches of fiduciary duty to the bank and its customers in connection with embezzlement of funds, forgery, and falsification of the bank's books and records. The order requires Mr. Stromgren to make restitution to the bank in the amount of $31,000.

The Federal Reserve Board announced on July 21, 2005, the issuance of an order of prohibition against Stefanie Milmine, a former employee of Fifth Third Bank in Grand Rapids, Michigan.

Ms. Milmine, without admitting to any allegations, consented to the issuance of the order based on her alleged participation in violations of law and breaches of fiduciary duty in connection with embezzlement of funds at the bank, as well as similar violations and breaches at other banks.

The Federal Reserve Board announced on August 1, 2005, the issuance of a cease and desist order and order of assessment of a civil money penalty against Frank French, a former institution-affiliated party of the Montana State Bank, Plentywood, Montana.

Mr. French, without admitting to any allegations, consented to the issuance of the order for alleged violations of the Board of Governors' Regulation O, which governs loans to executive officers, directors, and principal shareholders of member banks. The order also requires Mr. French to pay a civil money penalty of $10,000.

Termination of Enforcement Actions

The Federal Reserve Board announced on April 21, 2005, the termination of the enforcement actions listed below. The Federal Reserve's enforcement action web site, www.federalreserve.gov/boarddocs/ enforcement, reports the terminations as they occur.

* Bank of the Orient, San Francisco, California Cease and desist order dated May 7, 2002 Terminated April 18, 2005

* Gold Bank, Leawood, Kansas, and Gold Banc Corporation, Inc., Leawood, Kansas

Written agreement dated August 26, 2003

Terminated April 19, 2005
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Title Annotation:Announcements
Publication:Federal Reserve Bulletin
Geographic Code:1USA
Date:Jun 22, 2005
Words:1337
Previous Article:Board seeks nominations for appointments to Consumer Advisory Council.
Next Article:Changes in Board staff.
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