Order No. 2019-028

Order of Prohibition Page 1

Order No. 2019-028

IN THE MATTER OF: § BEFORE THE BANKING

SUSANN NELSON § COMMISSIONER OF TEXAS

GREENVILLE, TEXAS § AUSTIN, TRAVIS COUNTY, TEXAS

ORDER PROHIBITING FURTHER PARTICIPATION

On this day, the matter of SUSANN NELSON, Greenville, Texas, (Nelson) was submitted

to me, Charles G. Cooper, Banking Commissioner of the State of Texas (Commissioner), for

consideration and action.

I. Findings of Fact

A. Jurisdiction

1. Nelson is a former employee of LegacyTexas Bank, Plano, Texas (Bank), a bank that is

chartered by the State of Texas.

2. The Texas Department of Banking (Department) is authorized to bring this enforcement

action pursuant to Texas Finance Code §35.003.

3. The Bank and Nelson are, and at all times pertinent to the allegations in this proceeding

were, subject to the provisions of the Texas Banking Act, Texas Finance Code Title 3,

Subtitle A.

B. General background

4. Nelson was employed at a Richardson, Texas branch of the Bank from 1999 to 2015. From

2006 until 2015, Nelson was the central vault manager.

5. In her position as central vault manager, Nelson maintained control over the amount of

cash in the Bank’s vault on a daily basis, including ordering cash from the Federal Reserve

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Bank and other financial institutions and documenting the receipt of cash into the Bank’s

books and records.

C. Misapplication and Embezzlement of Bank Funds

6. From at least as early as January 2010 until on or about February 10, 2015, Nelson used

her position at the Bank to embezzle a sum of money exceeding $1,000 and engaged in a

lapping scheme in which successive cash shipments received by the bank were misapplied

to prior cash shipments in order to hide the embezzlement.

D. False Entries

7. From at least as early as January 2010 until on or about February 10, 2015, in furtherance

of the lapping scheme described above, Nelson recorded the receipt of cash shipments from

the Federal Reserve Bank on specific dates, when in truth and fact as Nelson well knew,

the cash shipments had been received by the Bank on earlier dates.

II. Conclusions of law

8. The Commissioner has jurisdiction over Nelson and the subject matter of this proceeding

pursuant to Texas Finance Code §§35.002 and 35.003.

9. Nelson intentionally violated applicable law, in particular, 18 U.S.C. §656, through the

misapplication and embezzlement of funds, and 18 U.S.C. §1005, through the recording of

false entries, over a five-year period.

10. These violations of law constitute unsafe and unsound bank practices. Texas Finance Code

§§35.002(a)(2) and 35.003(a)(1)(A).

11. Nelson made, or caused to be made, false entries in the records of a financial institution.

Texas Finance Code §35.003(a)(1)(C).

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12. Nelson’s acts as described in the Findings of Fact caused the Bank to suffer financial loss.

Texas Finance Code §35.003(a)(2)(A).

13. Due to Nelson’s acts as described in the Findings of Fact, the interests of the depositors,

creditors, or shareholders of the Bank were or could have been prejudiced. Texas Finance

Code §35.003(a)(2)(B).

14. Nelson benefitted from the acts described in the Findings of Fact. Texas Finance Code

§35.003(a)(2)(C).

15. Nelson’s acts as described in the Findings of Fact were personally dishonest and taken with

continuing and willful disregard for the safety and soundness of the Bank. Texas Finance

Code §35.003(a)(3)(A) and (B).

16. The Commissioner has considered the matter and determines that, based upon bank

examination or other credible evidence, Nelson’s actions satisfy the statutory requirements

for the issuance of a Prohibition Order as set forth in Texas Finance Code §35.003. In

particular, the Commissioner determines that:

a. Nelson has intentionally committed or participated in violations of law or

regulations, unsafe or unsound practices, and/or breaches of fiduciary duty with

regard to the affairs of the Bank;

b. because of these actions by Nelson, the Bank has suffered or will probably suffer

financial loss or other damage and/or Nelson received financial gain or other benefit

by reason of the actions, or likely would have if the actions had not been discovered;

and

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c. such actions involve personal dishonesty on the part of Nelson or demonstrate

Nelson’s willful and/or continuing disregard for the safety and soundness of the

Bank.

17. The Commissioner further determines that such violations of law or regulations, unsafe or

unsound practices, and/or breaches of fiduciary duty demonstrate Nelson’s unfitness to

serve as a director, officer, or employee of a state bank, state bank holding company, or

state trust company, among other positions to which this Prohibition Order applies, or to

directly or indirectly participate in any manner in the management of such entity.

Accordingly, the entry of this Prohibition Order appears to be necessary and in the best

interest of the public.

III. Order of Prohibition

It is, therefore, ORDERED, ADJUDGED and DECREED that, pursuant to Texas Finance

Code §§35.003 and 35.007, SUSANN NELSON may not:

1. serve as a director, officer, or employee of a state bank, holding company of a state bank,

or state trust company, or as a director, officer, or employee with financial responsibility

of any other entity chartered, registered, permitted, or licensed by the Banking

Commissioner under the laws of this state;

2. directly or indirectly participate in any manner in the management of such entity or in the

conduct of their affairs;

3. directly or indirectly vote for a director of such an entity; or

4. solicit, procure, transfer, attempt to transfer, vote, or attempt to vote any proxy, consent, or

authorization with respect to voting rights in such an entity.

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IV. Effective Date

This Order of Prohibition against SUSANN NELSON is effective twenty-one days after

mailing, unless Nelson requests a hearing in writing before that date. After taking effect, the Order

will be final, nonappealable, and of perpetual duration. The provisions of this Order will remain

effective and in force except in the event that, and until such time as, this Order shall have been

modified, terminated, suspended, or set aside in accordance with Texas Finance Code §35.0071.

It is so ORDERED.

Signed this13th day of September, 2019.

/s/ Charles G. Cooper

Charles G. Cooper

Banking Commissioner of the State of Texas

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CERTIFICATE OF SERVICE

This Order of Prohibition is served on SUSANN NELSON as follows: By first-class mail

and by certified mail, return receipt requested, sent on September 13, 2019, to:

Susann Nelson 56150-177

FMC Carswell

Federal Medical Center

P.O. Box 27137

Fort Worth, Texas 76127

CMRRR# 91 7199 9991 7031 6327 4591

/s/ Marcus Adams

Marcus Adams

Assistant General Counsel

Texas Department of Banking