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OTS SEEKS PROHIBITION, RESTITUTION FROM FORMER DAVY CROCKETT OFFICIAL

 WASHINGTON, April 21 /PRNewswire/ -- The Office of Thrift Supervision (OTS) is seeking more than $139,000 in restitution from the former chairman of Davy Crockett Federal Savings Bank, Crockett, Texas, and his prohibition from the banking industry.
 The action comes at the end of OTS settlements with 36 officers, directors and advisory directors of the thrift, the largest number of affiliated persons ever involved in an enforcement action with a single thrift.
 OTS filed charges against John H. Stowe, who was controlling stockholder as well as former chairman of the thrift. The thrift, with assets of $50.5 million, was placed in receivership under the Resolution Trust Corporation on Sept. 13, 1991.
 Stowe violated OTS regulations, breached his fiduciary duty and participated in unsafe or unsound practices while an officer of Davy Crockett, OTS charged. The agency said Stowe used Davy Crockett funds to pay $14,484 in attorney fees he incurred in getting financing from a commercial bank for himself and a partner, Henry M. Ellis, now deceased, to purchase Davy Crockett stock.
 OTS also said Stowe diverted $76,200 of the thrift's money to pay fees to members of an advisory board who in turn channeled the money back to Stowe to pay for his personal Davy Crockett stock. The advisory board had no duties or responsibilities, was not required to provide any reports or advice to the board of directors and kept no records or minutes. OTS has recovered $57,830 of this in restitution from other officers, directors and advisory directors.
 In addition, said OTS, Stowe authorized and approved without board approval the origination of 17 unsecured loans totaling $267,496 to 17 of the advisory directors. The loans were made in violation of Davy Crockett's lending policies against unsecured loans, and were made for the undisclosed purpose of reducing the principal on Stowe's stock loan. As of the date of the charges, the thrift recognized losses of at least $90,000 on the loans.
 Finally, OTS charged Stowe violated a supervisory agreement made with OTS by authorizing and approving 18 loans to officers and directors. OTS said Stowe described the agreement to the board of directors as an insignificant supervisory document unworthy of their review and instructed a thrift officer to conceal the agreement and not make it available for review by any person.
 Without admitting or denying guilt, 16 of the former advisory directors and two former officers earlier consented to being banned from the banking industry; eight former officers consented to cease and desist orders and five of the former officers paid restitution of $1,000 each for advisory fees while a sixth former officer paid $900 in restitution and a civil money penalty of $10,000.
 Eleven former directors agreed to be banned from banking; nine signed consent cease and desist orders for restitution for advisory fees totaling $51,930 and paid civil money penalties totaling $45,000 and one consented to debarment of practice before OTS.
 Following is a list of former officers and directors noting the types of agreements to which they consented and the amounts they paid in restitution and civil money penalties.
 DAVY CROCKETT FEDERAL SAVINGS BANK
 Former Officers, Directors and Advisory Directors
 The following individuals, without admitting or denying guilt, signed consent orders for the remedies indicated.
 Former Officers
 1. Murdoch Frank ("Dick") Murchison, former president, director and advisory director -- prohibition, a cease and desist order and restitution of $900 in advisory fees and a civil money penalty of $10,000.
 2. Barbara Cross, former executive vice president, loan officer and advisory director -- a cease and desist order and restitution of $1,000 in advisory fees.
 3. Shirley Grammer, former senior vice president for public relations and advisory director -- a cease and desist order and restitution of $1,000 in advisory fees.
 4. Patricia Lucas, former senior vice president, loan officer and advisory director -- a cease and desist order and restitution of $1,000 in advisory fees.
 5. Eva Wooley, senior vice president, cashier and advisory director -- a cease and desist order and restitution of $1,000 in advisory fees.
 6. Charles Haley, vice president for annuities -- prohibition.
 7. Jean Sepmoree, vice president, credit and mortgage servicing and advisory director -- a cease and desist order and restitution of $1,000 in advisory fees.
 8. Frances Avery, assistant vice president and advisory director -- a cease and desist order.
 9. Susan Bass, assistant cashier, assistant secretary-treasurer and advisory director -- a cease and desist order.
 Former Directors
 10. John Allen -- prohibition and civil money penalty of $2,500.
 11. Oliver P. Bass (no relation to Susan Bass) -- prohibition, restitution of $5,000 in advisory director fees and a civil money penalty of $2,500.
 12. Albert Brewer, also an advisory director -- prohibition and restitution of $2,930 in advisory director fees.
 13. Jake Caprielian -- prohibition, restitution of $9,000 in advisory director fees and a civil money penalty of $2,500.
 14. Terry Craig, also an advisory director -- prohibition, restitution of $2,200 in advisory director fees and a civil money penalty of $2,500.
 15. Joe Griffith -- prohibition and debarment from practicing as an attorney before OTS.
 16. Howard Harrison -- prohibition, restitution of $9,000 in advisory director fees and a civil money penalty of $2,500.
 17. Ray Morrow -- prohibition, restitution of $3,740 in advisory director fees and a civil money penalty of $10,000.
 18. Everett Ramsey -- prohibition, restitution of $5,030 in advisory director fees and a civil money penalty of $10,000.
 19. John Smock -- prohibition, restitution of $5,030 in advisory director fees and a civil money penalty of $10,000.
 20. Lesal Waller -- prohibition, restitution of $10,000 in advisory director fees and a civil money penalty of $2,500.
 Former Advisory Directors
 The following 16 advisory directors consented to orders of prohibition from the banking industry:
 Tom Allee, Ben Childress, Donn Currey, A.L. Dowell, Lorinne Driskell, Joanne Holcomb, Don Jones, William Josey, Clarence Keels, Jim Lovell, Zealous Martin, Diane Rhone, Maxine Stowe, Jerry Teague, Bebe Ulrich and Otis Wooten.
 DAVY CROCKETT SAVINGS BANK
 Crockett, Texas
 Summary of
 Restitution and Civil Money Penalties Paid
 RESTITUTION FOR CIVIL MONEY
 ADVISORY FEES PENALTIES
 TOTAL AMOUNT OF FEES
 PAID: $76,200
 Former Officers:
 Cross $ 1,000
 Grammer 1,000
 Lucas 1,000
 Murchison (also a director) 900 $ 10,000
 Sepmoree 1,000
 Woolley 1,000
 $ 5,900 $ 10,000
 Former Directors:
 Allen $ $ 2,500
 Bass 5,000 2,500
 Brewer 2,930
 Caprielian 9,000 2,500
 Craig 2,200 2,500
 Harrison 9,000 2,500
 Morrow 3,740 10,000
 Ramsey 5,030 10,000
 Smock 5,030 10,000
 Waller 10,000 2,500
 $ 51,930 $ 45,000
 TOTAL RECOVERED TO DATE $ 57,830 $ 55,000
 -0- 4/21/93
 /CONTACT: Thomas P. Mason of the Office of Thrift Supervision, 202-906-6688/


CO: Office of Thrift Supervision; Davy Crockett Federal Savings Bank ST: Texas IN: FIN SU:

TW-MH -- DC032 -- 8892 04/21/93 15:38 EDT
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Publication:PR Newswire
Date:Apr 21, 1993
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