Order No. 2005-023

In The Matter Of:
Jorge Gomez
Edinburg, Texas

Before The Banking Commissioner of Texas
Austin, Travis County, Texas

Order Prohibiting Further Participation

On this day, the matter of JORGE GOMEZ, of Elsa, Texas ("Respondent") was submitted to me, Randall S. James, Banking Commissioner of the State of Texas ("Commissioner"), for consideration and action.

I. Findings

  1. Respondent worked for Elsa State Bank and Trust Company, Elsa, Texas (the "Bank").
  2. Respondent processed loans without authority or approval and for his personal benefit.
  3. Respondent took for his personal benefit loan proceeds without authority or approval.
  4. The actions by Respondent in paragraphs 2 and 3 of this Section occurred from on or about December 20, 2002 to on or about December 31, 2003.
  5. Respondent plead guilty in the United States District Court, Southern District of Texas, McAllen Division, to knowingly executing a scheme or artifice to obtain moneys, funds, credits, assets, securities, or other property owned by or under the custody of the Bank by means of false or fraudulent pretenses, representations, or promises by taking from the Bank approximately $113,472.62 in the form of fraudulent loan proceeds in violation of Title 18, United States Code, Section 1334(2).

II. Conclusions

  1. Respondent violated Texas Finance Code § 35.002(a)(4) by conducting business at the Bank in an unsafe and unsound manner by approving and funding loans to his wife and himself without authority or approval.
  2. The Bank has suffered significant financial loss as a result of Respondent's actions.
  3. The Respondent's actions involved personal dishonesty on Respondent's part and demonstrated a wilful disregard for the safety and soundness of the Bank.
  4. Respondent's actions constitute sufficient grounds for the Commissioner to issue an order, under § 35.003 of the Code, prohibiting Respondent from further participation in the affairs of a state bank, as defined by Texas Finance Code §31.002(50) ("state bank").

III. Order

It is, therefore, ORDERED, ADJUDGED and DECREED that, with respect to a state bank, trust company, or other entity chartered, registered or licensed by the banking commissioner under the laws of this state, including an interstate branch, trust office, or representative office in this state of an out-of-state state bank, trust company, or foreign bank, and further including any entity chartered, registered or licensed by the banking commission under the laws of this state to provide services as a perpetual care cemetery, prepaid funeral business, sale of checks business, currency exchange business, or private child support enforcement agency, JORGE GOMEZ is prohibited from:

  1. serving as a director, officer, or employee;
  2. directly or indirectly participating in any manner in the conduct of its affairs;
  3. soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent, or authorization with respect to any voting rights; or
  4. directly or indirectly voting for a director, or serving or acting as a state bank-affiliated party.

IV. Effective Date

Pursuant to Texas Finance Code § 35.003(c) Respondent may appeal this order by requesting a hearing before August 8, 2005. If the Respondent does not timely request a hearing, this prohibition order against Respondent Jorge Gomez is effective August 8, 2005, pursuant to Texas Finance Code § 35.003(b)(3). After taking effect, the order is final and nonappealable as to Respondent.

V. Service

This Order Prohibiting Participation in the Affairs of a State Bank is served on Jorge Gomez by mailing it certified mail, return receipt requested, and by first-class mail, to 408 Orange Avenue, Edinburg, Texas 78539 on July 13, 2005.

Signed on this 12th day of July, 2005.

/s/ Randall S. James                                
Randall S. James
Banking Commissioner of the State of Texas