Shollenburg

MEMORANDUM **

Former officers of First Mountain Bank (FMB) Dennis Shollenburg, Hazel Hagy, Vicky Melton, and Brenda Knudson (collectively, bank officers) petition for review of an order of the Federal Deposit Insurance Corporation Board of Directors (FDIC) prohibiting them from further participation in the conduct of the affairs of any federally-insured depository institution. We deny the petition.

I

None of the bank officers’ procedural challenges merits reversal. They contend that the FDIC illegally seized and introduced into evidence their personal tax returns in violation of 26 U.S.C. § 6103 (a) and (b) and Stokwitz v. United States, 831 F.2d 893 (9th Cir.1987), but § 6103’s prohibitions do not apply as the returns were obtained from FMB’s files, not the Internal Revenue Service. Their argument that the FDIC suppressed attachments to FMB’s counsel’s letter fails because there is no indication that the documents would have been material or exculpatory. Bank officers’ complaint about pre-hearing procedures is not persuasive because FDIC rules permit only document discovery, which is a neutral rule, see 12 C.F.R. §§ 308.24 , 308.27, 308.107, and they did not object to the…