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3 S&L Officials in ESM Case Found Guilty

March 03, 1987|Associated Press

CINCINNATI — Former Home State Savings Bank owner Marvin Warner and two other officers of the defunct savings and loan were found guilty Monday of state charges stemming from an investment plan that triggered a statewide financial crisis.

Warner, who was U.S. ambassador to Switzerland during the Carter Administration, was convicted of six unauthorized acts in Home State's investments with ESM Government Securities Inc. of Fort Lauderdale, Fla. He was also found guilty of three counts of securities violations for misrepresenting the company's net worth in a 1984 bond issue.

The 67-year-old Warner, who faces up to 13 1/2 years in prison, was found not guilty of 35 unauthorized acts and 41 counts of misapplication of funds.

David Schiebel, 56, a former Home State president, was found not guilty of 41 counts of willful misapplication of funds and 41 unauthorized acts, but was found guilty of three counts of securities violations. He was found not guilty of a fourth securities count.

Burton Bongard, 45, another former Home State president, was found guilty of 41 counts of willful misapplication of funds and 41 unauthorized acts.

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