Federal regulators have sued the former top managers and owners of Butterfield Savings & Loan Assn., claiming that they negligently operated and defrauded the Santa Ana institution.
The suit, filed in U.S. District Court in Los Angeles, seeks a total of more than $40 million from the S&L's former chairman, Donald Endresen, and from four other former officers and the former holding company, Butterfield Equities, for allegedly concealing from the S&L's board facts about certain loans and investments.
Butterfield was declared insolvent and seized last Aug. 7 by the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corp. The regulators kept the S&L's two branch offices open and turned its management over to a team from Downey S&L. Downey is not involved in the lawsuit.
Reached on Wednesday at the Anaheim office of Butterfield Equities, which was not taken over by regulators, Endresen was reluctant to comment on any specific allegations, saying that he had not yet been served with the complaint and was not aware of its contents.