419 
party, in any manner, in the conduct of the af-
fairs of any regulated entity. 
‘‘(b) SUSPENSION ORDER.— 
‘‘(1) SUSPENSION
OR
PROHIBITION
AUTHOR-
ITY.—If the Director serves written notice under sub-
section (a) to any regulated entity-affiliated party of 
the Director’s intention to issue an order under such 
subsection, the Director may— 
‘‘(A) suspend such party from office or pro-
hibit such party from further participation in 
any manner in the conduct of the affairs of the 
regulated entity, if the Director— 
‘‘(i) determines that such action is nec-
essary for the protection of the regulated en-
tity; and 
‘‘(ii) serves such party with written 
notice of the suspension order; and 
‘‘(B) prohibit the regulated entity from re-
leasing to or on behalf of the regulated entity-af-
filiated party any compensation or other pay-
ment of money or other thing of current or po-
tential value in connection with any resignation, 
removal, retirement, or other termination of em-
ployment or office of the party.
420 
‘‘(2) EFFECTIVE PERIOD.—Any suspension order 
issued under this subsection— 
‘‘(A) shall become effective upon service; and 
‘‘(B) unless a court issues a stay of such 
order under subsection (g) of this section, shall 
remain in effect and enforceable until— 
‘‘(i) the date the Director dismisses the 
charges contained in the notice served under 
subsection (a) with respect to such party; or 
‘‘(ii) the effective date of an order 
issued by the Director to such party under 
subsection (a). 
‘‘(3) COPY OF ORDER.—If the Director issues a 
suspension order under this subsection to any regu-
lated entity-affiliated party, the Director shall serve a 
copy of such order on any regulated entity with which 
such party is affiliated at the time such order is 
issued. 
‘‘(c) NOTICE, HEARING, AND ORDER.—A notice of in-
tention to remove a regulated entity-affiliated party from 
office or to prohibit such party from participating in the 
conduct of the affairs of a regulated entity shall contain 
a statement of the facts constituting grounds for such ac-
tion, and shall fix a time and place at which a hearing 
will be held on such action. Such hearing shall be fixed for
421 
a date not earlier than 30 days nor later than 60 days after 
the date of service of such notice, unless an earlier or a 
later date is set by the Director at the request of (1) such 
party, and for good cause shown, or (2) the Attorney Gen-
eral of the United States. Unless such party shall appear 
at the hearing in person or by a duly authorized representa-
tive, such party shall be deemed to have consented to the 
issuance of an order of such removal or prohibition. In the 
event of such consent, or if upon the record made at any 
such hearing the Director shall find that any of the grounds 
specified in such notice have been established, the Director 
may issue such orders of suspension or removal from office, 
or prohibition from participation in the conduct of the af-
fairs of the regulated entity, as it may deem appropriate, 
together with an order prohibiting compensation described 
in subsection (b)(1)(B). Any such order shall become effec-
tive at the expiration of 30 days after service upon such 
regulated entity and such party (except in the case of an 
order issued upon consent, which shall become effective at 
the time specified therein). Such order shall remain effective 
and enforceable except to such extent as it is stayed, modi-
fied, terminated, or set aside by action of the Director or 
a reviewing court.
422 
‘‘(d) PROHIBITION
OF CERTAIN SPECIFIC ACTIVI-
TIES.—Any person subject to an order issued under this sec-
tion shall not— 
‘‘(1) participate in any manner in the conduct 
of the affairs of any regulated entity; 
‘‘(2) solicit, procure, transfer, attempt to trans-
fer, vote, or attempt to vote any proxy, consent, or au-
thorization with respect to any voting rights in any 
regulated entity; 
‘‘(3) violate any voting agreement previously ap-
proved by the Director; or 
‘‘(4) vote for a director, or serve or act as a regu-
lated entity-affiliated party. 
‘‘(e) INDUSTRY-WIDE PROHIBITION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any person who, pursuant to an order 
issued under this section, has been removed or sus-
pended from office in a regulated entity or prohibited 
from participating in the conduct of the affairs of a 
regulated entity may not, while such order is in effect, 
continue or commence to hold any office in, or par-
ticipate in any manner in the conduct of the affairs 
of, any regulated entity. 
‘‘(2) EXCEPTION IF DIRECTOR PROVIDES WRIT-
TEN CONSENT.—If, on or after the date an order is
423 
issued under this section which removes or suspends 
from office any regulated entity-affiliated party or 
prohibits such party from participating in the con-
duct of the affairs of a regulated entity, such party 
receives the written consent of the Director, the order 
shall, to the extent of such consent, cease to apply to 
such party with respect to the regulated entity de-
scribed in the written consent. If the Director grants 
such a written consent, it shall publicly disclose such 
consent. 
‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED AS 
VIOLATION OF ORDER.—Any violation of paragraph 
(1) by any person who is subject to an order described 
in such subsection shall be treated as a violation of 
the order. 
‘‘(f) APPLICABILITY.—This section shall only apply to 
a person who is an individual, unless the Director specifi-
cally finds that it should apply to a corporation, firm, or 
other business enterprise. 
‘‘(g) STAY OF SUSPENSION AND PROHIBITION OF REG-
ULATED ENTITY-AFFILIATED PARTY.—Within 10 days 
after any regulated entity-affiliated party has been sus-
pended from office and/or prohibited from participation in 
the conduct of the affairs of a regulated entity under this 
section, such party may apply to the United States District
424 
Court for the District of Columbia, or the United States 
district court for the judicial district in which the head-
quarters of the regulated entity is located, for a stay of such 
suspension and/or prohibition and any prohibition under 
subsection (b)(1)(B) pending the completion of the adminis-
trative proceedings pursuant to the notice served upon such 
party under this section, and such court shall have jurisdic-
tion to stay such suspension and/or prohibition. 
‘‘(h) SUSPENSION OR REMOVAL OF REGULATED ENTI-
TY-AFFILIATED PARTY CHARGED WITH FELONY.— 
‘‘(1) SUSPENSION OR PROHIBITION.— 
‘‘(A) IN
GENERAL.—Whenever any regu-
lated entity-affiliated party is charged in any 
information, indictment, or complaint, with the 
commission of or participation in a crime in-
volving dishonesty or breach of trust which is 
punishable by imprisonment for a term exceed-
ing one year under State or Federal law, the Di-
rector may, if continued service or participation 
by such party may pose a threat to the regulated 
entity or impair public confidence in the regu-
lated entity, by written notice served upon such 
party— 
‘‘(i) suspend such party from office or 
prohibit such party from further participa-