UNITED

STATES BEFORE

OF AMERICA THE RESERVE SYSTEM

BOARD

OF GOVERNORS

OF THE FEDERAL WASHINGTON. DC

---X

Docket

Nos.

In the Matter JOHN E. COLLEY

of

97-002-E-I 97-002-CMP-I

A Former Employee and Institution-Affiliated Party of TRUSTCO BANK Schenectady, A Former NEW New YORK York Bank ---f,

Combined Order of Prohibition and Assessment of a Civil Money Penalty, Issued Pursuant to the Federal Deposit Insurance Act, as Amended

State

Member

WHEREAS, of the Federal 55 1818(e) and

pursuant

to Sections Act,

8(e)

and

8(i) (12 U.S.C. of Governors issues

Deposit 1818(i)) Reserve Order

Insurance

as amended the Board

(the "FDI Act"), System (the "Board

of the Federal this Money combined Penalty

of Governors")

of Prohibition upon and

and Assessment the consent

of a Civil E. Colley party, § 1813(u))

(the "Order") employee 3(u)

of John

("Colley") , a former as defined of Trustco formerly Reserve fiduciary the sale in Section Bank

institution-affiliated (12 U.S.C. York

of the FDI Act Schenectady, bank New

New York,

("Trustco"), Federal of his with

a State-chartered System, duty relating to Trustco

and a member alleged

of the breaches

to Colley's and

its customers to certain

in connection trust

of numismatic and

coins

of Trustco's for a coin

customers, belonging

the custodial trust

arrangements customer; and

collection

to a Trustco

WHEREAS, has consented and Order,

by affixing
issuance

his

signature Order each

hereunder, by the Board and every he might 263,

colley of

to the

of this with

Governors of this pursuant

consented

to comply any and

provision have

and waived

all rights

to 12 U.S.C. issuance

§ 1818

or 12 C.F.R. of charges money with

Part

or otherwise and of

(a) to the a notice for

of a notice

and of hearing

of assessment

of a civil evidence

penalty; respect

(b) to a hearing to any matter review or

the purpose or set Order in any

of taking forth

implied of this contest tiveness, provision

in this

Order;

(c) to obtain and

judicial

or any provision matter

hereof;

(d) to challenge validity, of this effecOrder

the basis,

issuance,

collectibility hereof; NOW, THEREFORE,

or enforceability

or any

prior

to the taking issue

of any testimony or law of in

or adjudication herein, any

of or finding this or Order

on any

of fact

and without made this

constituting by the Board and solely

an admission of Governors

allegation with

implied

connection

proceeding, proceeding

for the purpose or extended

of settlement hearings

of this

without

protracted

or testimony: IT IS HEREBY ORDERED, and Colley hereby agrees that,

pursuant

to Section 1.

8(e)

of the FDI Act: prior written approval to of the

Colley, and,

without where

Board Section another not:

of Governors

necessary

pursuant

8(e) (7) (B) of the FDI Act Federal financial

(12 U.S.C.

5 1818(e) (7) (B)), agency, shall

institution

regulatory

2

(a) of the Section affairs

Participate institution

in any manner or agency (12 U.S.C.

in the

conduct in

of any

specified

8ie) 17) (Ai of the FDI Act but or any thereof; (b) solicit, not limited

§ 1818(e) (7) (A)), or or holding

including, assigns, company

to, Trustco, depositary

its successors institution

other

insured

procure,

transfer,

attempt or

to

transfer,

vote

or attempt with respect

to vote

any proxy,

consent, in any

authorization institution Act;

to any voting

rights

described

in Section

8(e) (7) (A) of the FDI

(c)

violate

any voting agency;

agreement or

previously

approved

by any Federal (d) vote

banking

for a director, party,

or serving

or acting 3(u) in any of

as

an institution-affiliated the FDI Act, institution 2. Section pay 8(i) such

as defined director

in Section or employee

as an officer, in Section

described

8(e) (7) (A) of the FDI Act. ORDERED, pursuant to and shall

IT IS HEREBY of the FDI Act, of Governors duty.

FURTHER that the

Colley

is assessed

to the Board

sum of $40,000

for alleged

breaches

of fiduciary 3.

The penalty in full, to the at the

assessed time

pursuant

to this execution

Order

shall

be remitted Order, System"

of Colley's

of this Reserve Order,

payable and

"Board with

of Governors

of the Federal copy Board of this

forwarded W. Wiles,

Colley's

executed

to William of the

Secretary System,

of the Board, Washington, DC

of Governors The Board

Federal

Reserve

20551.

3

of Governors United States 4. sent to:

shall

remit

the payment by statute.

to the Treasury

of the

as required All

communications

regarding

this

Order

shall

be

(a)

Robert A. O'Sullivan Senior Vice President Federal Reserve Bank of New York 33 Liberty Street New York, NY 10045 and a copy to:

James J. Hilton, Esq Legal Department Federal Reserve Bank of New York 33 Liberty Street New York, NY 10045 (b) John E. Colley c/o William Dreyer, Esq. Dreyer Boyajian, LLP 75 Columbia Street Albany, NY 12210 violations of this civil order shall separately or both

5. subject under Colley Section 6. or otherwise state Colley, take any agency

Any

to appropriate 8(i) and

or criminal

penalties

Cj) of the FDI Act of this Order shall not bar, federal estop, or

The provisions prevent the Board

of Governors, taking

or any

or department however, action

from that

any other

action

affecting shall not

provided, further known

the Board Colley

of Governors upon

against

based

information to the matters

presently addressed

by the Board Order provision

of Governors

relating

by this 7.

Each

of this

Order

shall

remain terminated OL

effective suspended

and enforceable in writing

until

stayed,

modified,

by the Board

of Governors.

4

By order Reserve System,

of the Board

of Governors
day of

of the Federal
/-%--JJYI,

effective

this 3 d

/

, 1998.

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

By:

Jofy
v

E. Colley CI

William W. Wiles Secretary of the

)!,A

I

Board