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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 suspen-
sion or removal from office, or prohibition from participa-
tion in the conduct of the affairs of the regulated entity, 
as it may deem appropriate, together with an order pro-
hibiting compensation described in subsection (b)(1)(B). 
Any such order shall become effective 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, modified, terminated, 
or set aside by action of the Director or a reviewing court. 
‘‘(d) PROHIBITION OF CERTAIN SPECIFIC ACTIVI-
TIES.—Any person subject to an order issued under this 
section 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 
authorization with respect to any voting rights in 
any regulated entity; 
‘‘(3) violate any voting agreement previously 
approved by the Director; or
291
‘‘(4) vote for a director, or serve or act as a 
regulated 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 prohib-
ited 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 participate 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 
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 en-
tity described in the written consent. If the Director 
grants such a written consent, it shall publicly dis-
close such consent.
292
‘‘(3) VIOLATION OF PARAGRAPH (1) TREATED 
AS VIOLATION OF ORDER.—Any violation of para-
graph (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 spe-
cifically finds that it should apply to a corporation, firm, 
or other business enterprise. 
‘‘(g) STAY OF SUSPENSION AND PROHIBITION OF 
REGULATED
ENTITY-AFFILIATED
PARTY.—Within 10 
days after any regulated entity-affiliated party has been 
suspended 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 Court for the District of Columbia, or the United 
States district court for the judicial district in which the 
headquarters 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 
administrative proceedings pursuant to the notice served 
upon such party under this section, and such court shall 
have jurisdiction to stay such suspension and/or prohibi-
tion.
293
‘‘(h) SUSPENSION OR REMOVAL OF REGULATED EN-
TITY-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 
Director may, if continued service or participa-
tion by such party may pose a threat to the 
regulated entity or impair public confidence in 
the regulated entity, by written notice served 
upon such party—
‘‘(i) suspend such party from office or 
prohibit such party from further participa-
tion in any manner in the conduct of the 
affairs of any regulated entity; and 
‘‘(ii) prohibit the regulated entity 
from releasing to or on behalf of the regu-
lated entity-affiliated party any compensa-
tion or other payment of money or other 
thing of current or potential value in con-
nection with the period of any such sus-
294
pension or with any resignation, removal, 
retirement, or other termination of employ-
ment or office of the party. 
‘‘(B) PROVISIONS
APPLICABLE
TO
NO-
TICE.—
‘‘(i) COPY.—A copy of any notice 
under paragraph (1)(A) shall also be 
served upon the regulated entity. 
‘‘(ii) EFFECTIVE PERIOD.—A suspen-
sion or prohibition under subparagraph (A) 
shall remain in effect until the informa-
tion, indictment, or complaint referred to 
in such subparagraph is finally disposed of 
or until terminated by the Director. 
‘‘(2) REMOVAL OR PROHIBITION.—
‘‘(A) IN GENERAL.—If a judgment of con-
viction or an agreement to enter a pretrial di-
version or other similar program is entered 
against a regulated entity-affiliated party in 
connection with a crime described in paragraph 
(1)(A), at such time as such judgment is not 
subject to further appellate review, the Director 
may, if continued service or participation by 
such party may pose a threat to the regulated 
entity or impair public confidence in the regu-