Order No. 2007-033
In The Matter Of:
Natalie Joy Duncan-Smith
Round Rock, Texas
Before The Banking Commissioner of Texas
Austin, Travis County, Texas
Order Prohibiting Further Participation
On this day, the matter of NATALIE JOY DUNCAN-SMITH, of Round Rock, Texas (“Respondent”) was submitted to me, Randall S. James, Banking Commissioner of the State of Texas (“Commissioner”), for consideration and action.
Respondent worked as a teller supervisor at Independent Bank’s branch location in Round Rock, Texas (“Bank”). The Texas Department of Banking (“Department”) is the appropriate state banking agency to bring this enforcement action pursuant to Texas Finance Code, § 35.003, and the Commissioner has jurisdiction over Respondent and the subject matter of this proceeding.
Beginning in or about March 2005, and continuing to on or about October 28, 2005, the Respondent was an employee of the Bank and acted with intent to injure and defraud the Bank by knowingly embezzling and willfully misapplying the moneys and funds and other things of value belonging to and otherwise entrusted to the care, custody, and control of the Bank in the amount of $82,923.00.
On February 14, 2007, Respondent plead guilty to bank theft and Respondent was placed on probation for a term of five (5) years with twelve (12) months home confinement. The Respondent was ordered to pay criminal monetary penalties in the amount of $82,923.00 for restitution.
The Federal Deposit Insurance Corporation (FDIC) adopted and approved a Stipulation and Consent to the Issuance of an Order of Prohibition from Further Participation entered into on November 9, 2006, by the Respondent.
On December 14, 2006, the FDIC issued an Order of Prohibition from Further Participation against Respondent.
Respondent intentionally conducted Bank business in an unsafe and unsound manner within the meaning of Texas Finance Code, § 35.002(a)(4) by acting with intent to injure and defraud the Bank and did knowingly embezzle and willfully misapply the moneys and funds and other things of value belonging to and otherwise entrusted to the care, custody, and control of the Bank in the amount of $82,923.00.
Respondent's actions exposed the Bank to financial loss and reputational damage by prejudicing the interests of the Bank’s vault and unassigned teller drawers which resulted in financial gain to Respondent. The Respondent’s actions involved personal dishonesty and demonstrated a wilful disregard for the safety and soundness of the Bank.
Respondent's actions constitute sufficient grounds for the Commissioner to issue this Order, under the authority of Texas Finance Code, § 35.003, prohibiting Respondent from further participation in the affairs of a state bank, as defined by Texas Finance Code, § 31.002(50) (“state bank”).
Based on the foregoing Findings and Conclusions, it is hereby ORDERED, ADJUDGED and DECREED that, with respect to a state bank, trust company, or other entity chartered, registered or licensed by the 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 a perpetual care cemetery, prepaid funeral business, money services business, or private child support enforcement agency, NATALIE JOY DUNCAN-SMITH is prohibited from:
serving as a director, officer, or employee;
directly or indirectly participating in any manner in the conduct of its affairs;
soliciting, procuring, transferring, attempting to transfer, voting, or attempting to vote any proxy, consent, or authorization with respect to any voting rights; or
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 by August 15, 2007. If the Respondent does not timely request a hearing, this Order is effective and becomes final and nonappealable on August 16, 2007 in accordance with Texas Finance Code, § 35.003(b)(3).
This Order Prohibiting Participation in the Affairs of a State Bank is served on NATALIE JOY DUNCAN-SMITH by mailing it certified mail, return receipt requested, and by first-class mail, to 1305 Sam Bass Cir., #208, Round Rock, Texas 78681 on July 25, 2007.
Signed on this 24th day of July, 2007.
Questions regarding this Order should be directed to:
Assistant General Counsel
Texas Department of Banking
2601 North Lamar Boulevard, Suite 300
Austin, Texas 78705
Telephone: (512) 475-1305
Facsimile: (512) 475-1313