Amberg v. Federal Deposit Insurance Corp‪.‬

GARZA, Circuit Judge This is an appeal from an FDIC order of default against Petitioners for violating 12 U.S.C. § 1828(j)(4). In entering default, the FDIC applied its Rules of Procedure and found the Petitioners did not have good cause to file a late answer. In reviewing the statute we find we have jurisdiction and the FDIC acted in violation of the Administrative Procedure Act. We therefore reverse the FDIC's order of default and remand for appropriate hearings. I. Disposition Below This case arises from a Notice of Assessment of Civil Money Penalties, Findings of Fact and Conclusions of Law, Order to Pay and Notice of Hearing (""Notice"") issued by the Federal Deposit Insurance Corporation (""FDIC"") on September 28, 1989.1 The Notice was filed against James C. Amberg, Robert Ray Carroll, Roscoe P. Steen, W. M. Causey, Billy Ray Whitehead and Benny Zeagler (""Petitioners"") individually and as directors of Olla State Bank pursuant to 12 U.S.C. § 1828(j)(4). Causey was assessed a $10,000 penalty while all the others were assessed $20,000.2 The Notice was served on Carroll, Steen, Whitehead and Zeagler on October 3 and on Amberg and Causey on October 4. Petitioners' counsel filed a Notice of Appearance on October 16 which included a request for a hearing. On October 27 an answer was filed.