Order No. 2005-024

In The Matter Of:

April M. Gray
Hallsville, Texas

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

Order Prohibiting Further Participation

On this day, the matter of APRIL M. GRAY, of Hallsville, 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 First State Bank of Hallsville, Hallsville, Texas (the "Bank").
  2. Beginning on September 20, 2002 and ending on October 22, 2004, Respondent debited the general ledger account of the Bank for overdraft and NSF charges approximately 400 times and credited her own accounts for the amounts of the debits in a total amount of $132,115.50.

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 debiting the general ledger account of the Bank for overdraft and NSF charges in the total amount of $132,115.50 and crediting this amount to her own accounts.
  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, APRIL M. GRAY 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 15, 2005. If the Respondent does not timely request a hearing, this prohibition order against Respondent APRIL M. GRAY is effective August 15, 2005, pursuant to Texas Finance Code §35.003(b)(3). After taking effect, the order is final and not appealable as to Respondent.

V. Service

This Order Prohibiting Participation in the Affairs of a State Bank is served on April M. Gray by mailing it certified mail, return receipt requested, and by first-class mail, to 202 Lawndale Street, Hallsville, Texas 75650-1006 on July 15, 2005.

Signed on this 15th day of July, 2005.

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