MARKET SCAMS

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FDIC Issues Removal and Prohibition Order Against Former Georgia Banker

FOR IMMEDIATE RELEASE
PR-35-2004 (3-30-2004) Media Contact:
Frank Gresock 202-898-6634


The Federal Deposit Insurance Corporation (FDIC) has issued a removal and prohibition order against Stephanie E. Stewart.

Stewart was the internal auditor of South Georgia Bank, Glennville, GA.

Stewart consented to the order without admitting or denying culpability. The FDIC's action is based on allegations that Stewart misappropriated funds and falsified bank records.

Stewart is prohibited from further participation in the banking industry without FDIC approval.

The order is attached.

http://www.fdic.gov/bank/individual/enforcement/NewOrders/03-041e.html

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

In the Matter of

STEPHANIE E. STEWART,
individually, and as an
institution-affiliated party of

SOUTH GEORGIA BANK
GLENNVILLE, GEORGIA

(Insured State Nonmember Bank)



ORDER OF PROHIBITION
FROM FURTHER PARTICIPATION

FDIC- 03-041e







STEPHANIE E. STEWART("Respondent") has been advised of the right to receive a NOTICE OF INTENTION TO PROHIBIT FROM FURTHER PARTICIPATION ("NOTICE") issued by the Federal Deposit Insurance Corporation ("FDIC") detailing the unsafe or unsound banking practices, and/or breaches of fiduciary duty for which an ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("ORDER") may be issued, and has been further advised of the right to a hearing on the alleged charges under section 8(e) of the Federal Deposit Insurance Act ("Act"), 12 U.S.C. § 1818(e), and the FDIC's Rules of Practice and Procedure, 12 C.F.R. Part 308. Having waived those rights, the Respondent entered into a STIPULATION AND CONSENT TO THE ISSUANCE OF AN ORDER OF PROHIBITION FROM FURTHER PARTICIPATION ("CONSENT AGREEMENT") with a representative of the Legal Division of the FDIC, whereby solely for the purpose of this proceeding and without admitting or denying any unsafe or unsound banking practices and/or breaches of fiduciary duty, Respondent consented to the issuance of an ORDER by the FDIC.

The FDIC considered the matter and determined it had reason to believe that:

(a) The Respondent has engaged or participated in unsafe or unsound banking practices, and/or breaches of fiduciary duty as an institution-affiliated party of SOUTH GEORGIA BANK, GLENNVILLE, GEORGIA;

(b) By reason of such practices and/or breaches of fiduciary duty, the Bank has suffered or will probably suffer financial loss or other damage, the interests of the Bank’s depositors have been or could be prejudiced, and/or Respondent received financial gain or other benefit; and

(c) Such practices and/or breaches of fiduciary duty involve personal dishonesty on the part of the Respondent or demonstrate the Respondent’s willful and/or continuing disregard for the safety and soundness of the Bank.

The FDIC further determined that such practices and/or breaches of fiduciary duty demonstrate the Respondent's unfitness to serve as a director, officer, person participating in the conduct of the affairs or as an institution-affiliated party of the Bank, any other insured depository institution, or any other agency or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A).

The FDIC, therefore, accepts the CONSENT AGREEMENT and issues the following:

ORDER OF PROHIBITION FROM FURTHER PARTICIPATION

1. STEPHANIE E. STEWART is hereby, without the prior written approval of the FDIC and the appropriate Federal financial institutions regulatory agency, as that term is defined in section 8(e)(7)(D) of the Act, 12 U.S.C. § 1818(e)(7)(D), prohibited from:

(a) participating in any manner in the conduct of the affairs of any financial institution or organization enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);

(b) soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent or authorization with respect to any voting rights in any financial institution enumerated in section 8(e)(7)(A) of the Act, 12 U.S.C. § 1818(e)(7)(A);

(c) violating any voting agreement previously approved by the appropriate Federal banking agency; or

(d) voting for a director, or serving or acting as an institution-affiliated party.

2. This ORDER will become effective upon its issuance by the FDIC. The provisions of this ORDER will remain effective and enforceable except to the extent that, and until such time as, any provision of this ORDER shall have been modified, terminated, suspended, or set aside by the FDIC.


Pursuant to delegated authority.

Dated this 27th day of February, 2004.


--------------------------------------------------------------------------------
Lisa K. Roy
Associate Director
Division of Supervision and Consumer Protection

http://www.fdic.gov/news/news/press/2004/pr3504.html