12 CFR 367.6 – Causes for exclusion
The FDIC may exclude a contractor, in accordance with the procedures set forth in this part, upon a finding that:
Terms Used In 12 CFR 367.6
- Contract: A legal written agreement that becomes binding when signed.
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Ethics Counselor: includes any official designated by the Ethics Counselor to act on the Ethics Counselor's behalf. See 12 CFR 367.3
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
(a) The contractor has been convicted of any felony;
(b) The contractor has been removed from, or prohibited from participating in the affairs of, any insured depository institution pursuant to any final enforcement action by the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, or the FDIC or their successors;
(c) The contractor has demonstrated a pattern or practice of defalcation;
(d) The contractor has caused a substantial loss to Deposit Insurance Fund (or any predecessor deposit insurance fund);
(e) The contractor has failed to disclose, pursuant to 12 CFR 366.6, a material fact to the FDIC;
(f) The contractor has failed to disclosed any material adverse change in the representations and certifications provided to FDIC under 12 CFR 366.6;
(g) The contractor has miscertified its status as a minority and/or woman owned business (MWOB);
(h) The contractor has a conflict of interest that was not waived by the Ethics Counselor or designee;
(i) The contractor has been subject to a final enforcement action by any federal financial institution regulatory agency, or has stipulated to such action;
(j) The contractor is debarred from participating in other federal programs;
(k) The contractor has been convicted of, or subject to a civil judgment for:
(1) Commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public or private agreement or transaction, or conspiracy to do the same;
(2) Violation of federal or state antitrust statutes, including those proscribing price fixing between competitors, allocation of customers between competitors, and bid rigging, or conspiracy to do the same;
(3) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, obstructing of justice, or conspiracy to do the same;
(4) Commission of any other offense indicating a breach of trust, dishonesty or lack of integrity, or conspiracy to do the same;
(l) The contractor’s performance under previous contract(s) with FDIC or RTC has resulted in:
(1) The FDIC or RTC declaring such contract(s) to be in default; or
(2) The termination of such contract(s) for poor performance; or
(3) A violation of the terms of a contract that would have resulted in a default or termination of the contract for poor performance if that violation had been discovered during the course of the contract; or
(m) The contractor has engaged in any conduct:
(1) Indicating a breach of trust, dishonesty, or lack of integrity that seriously and directly affects its ability to meet standards of present responsibility required of an FDIC contractor; or
(2) So serious or compelling in nature that it adversely affects the ability of a contractor to meet the minimum ethical standards required by 12 CFR part 366.