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Five Indicted in Ohio Banking Crisis

December 14, 1985|United Press International

CINCINNATI — The former owner of a bank that collapsed and set off the Ohio banking crisis last March was indicted Friday on 50 counts of theft by deception, securities violations and willful misapplication of funds.

Marvin Warner was indicted on one count of theft by deception, four counts of securities violations and 45 counts of willful misapplication of funds.

The special state grand jury was impaneled by Ohio Atty. Gen. Anthony Celebrezze on Sept. 3 to investigate the March collapse of the Home State Savings Bank and the subsequent run that forced Gov. Richard F. Celeste to close temporarily 70 state-chartered savings and loan institutions.

Home State lost $145 million in the bankruptcy of ESM Government Securities Inc. of Fort Lauderdale, Fla., whose operations are under scrutiny by state and federal investigators.

Also indicted were two former presidents of Home State, David Schiebel and Burton Bongard, and two ESM officials, Ronnie Ewton and George Mead.

Schiebel was charged with 44 counts of willful misapplication of funds, five counts of securities violations and one of theft by deception. Bongard was indicted on 44 counts of willful misapplication of funds.

Ewton was indicted on 40 counts of aiding and abetting willful misapplication of funds, 12 counts of theft by deception and four counts of obstruction of justice, and Mead was indicted on 10 counts of theft by deception and one count of obstruction.

Two federal grand juries and a special legislative committee also are investigating the case, and many multimillion-dollar lawsuits have been filed.

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