UNITED BEFORE THE BOARD

STATES

OF AMERICA FEDERAL D.C. RESERVE SYSTEM

OF GOVERNORS

OF THE

WASHINGTON,

) In the Matter STEPHEN of
) ) ) ) ) ) ) )

Docket

No.

97-012-E-I

R. KOURY

An Institution-Affiliated Party of First Western Trust Services New Castle, Pennsylvania and First Western Bancorp, Inc. New Castle, Pennsylvania

Company

Order of Prohibition Issued Upon Consent Pursuant to the Federal Deposit Insurance Act, as Amended

WHEREAS, Federal Deposit

pursuant

to sections Act, as amended

8(e)

and

(i) (3) of the

Insurance and

(the "FDI Act") of Governors of the this

(12 U.S.C. Federal Order

1818(e)

(i)(3)), (the

the Board

Reserve

System

"Board

of Governors") against Stephen

issues

of Prohibition a former

(the

"Order") and and

R. Koury party, (12 U.S.C. Company, subsidiary a

("Koury"),
as

employee 3(u)

an institution-affiliated 8(b) (3) of the FDI Act Western Trust Services

defined and

in sections

1813(u) New

1818(b) (3)), of First Pennsylvania Bancorp, holding ("Trust Inc., company,

Castle,

Services"), New due Castle,

a nonbank

of First registered

Western bank

Pennsylvania, alleged with his

to Koury's

participation misappropriation

in violations of Trust

of law in connection Services's customer and

company

funds;

2 WHEREAS, count of wire on December and 2, 1997, Koury pled guilty to one

fraud;

WHEREAS, consented to the

by affixing issuance and all 1818

his

signature Order

hereunder,

Koury

has

of this rights

by the Board otherwise 263,

of Governors have

and has waived pursuant

any

he might

to 12 U.S.C. issuance

or 12 C.F.R.

Part

or otherwise (b) to a to any

(a) to the hearing matter judicial challenge terms, for

of a notice

of intent evidence

to prohibit; with respect

the purpose implied of this

of taking or set Order

charged, review

forth

in this

Order;

(c) to obtain and (d) to

or any provision the basis, of this

hereof; issuance, Order

or contest

in any manner

validity,

effectiveness hereof.

or enforceability

or any

provision

NOW, adjudication set forth

THEREFORE,

prior

to the taking issue Order

of any

testimony

or

of or finding

on any this made

of fact

or law implied an of of

or

herein, of any

and without allegation

constituting

admission Governors settlement

or implied and solely

by the Board

in connection of t-his matter

herewith, without

for the purpose or extended

protracted

proceedings:

IT IS HEREBY (i) (3), and that:

ORDERED,

pursuant (12 U.S.C.

to sections 1818(e),

8(e), (i), and (j)),

(j) of the FDI Act

3 1. Koury, without the prior written approval of the

Board of Governors and, where necessary pur~suant to section 8(e)(7) (B) of the FDI Act (12 U.S.C. 1818(e) (7) (B)), another Federal financial institution regulatory agency, is hereby and henceforth prohibited:

(a)

From participating

in any manner in the

conduct of the affairs of any institution or agency specified in section 8(e)(7)(A) of the FDI Act (12 U.S.C. 1818(e) (7) (A)),

including, Trust Services, First Western Bancorp, Inc., or any insured depository institution, depository institution holding

company, or nonbank subsidiary thereof;

(b)

from soliciting, procuring, transferring,

attempting to transfer, voting or attempting to vote any proxy, consent, or authorization with respect to voting rights in any institution described in section 8(e) (7) (A) of the FDI Act;

Cc)

from violating any voting agreement

previously

approved by any Federal banking agency; or

(d)

from voting for a director or serving or party, as defined in

acting as an institution-affiliated

sections 3(u) and 8(b)(3) of the FDI Act (12 U.S.C. 1813(u) and 1818(b) (3)), such as an officer, director or employee.

4

2.

Any violation of this Order shall separately

subject Koury to appropriate civil or criminal penalties or both under sections 8(i) and (j) of the FDI Act.

3.

This Order, and each and every provision hereof, is

and shall remain fully effective and enforceable until expressly stayed, modified, terminated or suspended in writing by the Board of Governors.

4. addressed to:

All communications regarding this Order shall be

(a)

Mr. R. Chris Moore Senior Vice President Federal Reserve Bank of Cleveland 1455 East Sixth Street Cleveland, Ohio 44114 Mr. Stephen R. Koury 2409 Woodland Drive New Castle, Pennsylvania

(b)

16101

5.

(a)

The provisions of this Order shall not bar,

estop, or otherwise prevent the Board of Governors, or any Federal or State agency or department action affecting Koury. from taking any other

(b)

Koury agrees that the execution of this Order of

and its issuance by the Board of Governors is not dispositive

5

any civil or criminal offense that he may be charged with by any Federal or State agency or department.

day of

By order of the Board of Governors effective this &Q.J.?U.c,. .fe rJz*l/ ,lY

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Byz

cd_

Secretary of the Board