Wespac Financial Corp., Newport Beach, said Friday it has paid back investors the $5.25 million that two of the company's trust accounts lost through government securities transactions in 1984.
Losses included $3.75 million in principal and $1.5 million in interest. As sponsor of the two trusts--Wespac Investors Trusts II and III--Wespac Financial Corp. contributed $3.75 million in cash in January, 1985. Also, at the request of the trusts, Wespac committed two irrevocable letters of credit worth $1.5 million, which can be drawn by the trusts until Dec. 31, 1985.
Dorren Beckham, Wespac's marketing coordinator, also said Friday that in mid-April, the company will open a new trust program, Wespac IV. Shares in Wespac IV will cost $10 each, with minimum investments of $1,000, she said.
Wespac has refused to identify the brokerage from which the two money-losing trusts were purchased. Beckham said Wespac was not immediately informed of the losses by the brokerage, but it had "immediately terminated" investments with the firm when the losses were discovered last year.