Investor Paul Amir accused federal savings and loan regulators Thursday of fraudulently concealing the "dissipated" financial condition of Beverly Hills Savings & Loan when they "induced" him to take control of the firm in April, 1984.
In a lawsuit filed in U.S. District Court here against the Federal Savings and Loan Insurance Corp., Amir said FSLIC knew that Beverly Hills S&L was "on the verge of financial collapse and ruin" at the time and demanded more than $100 million in damages.
The agency and its overseer, the Federal Home Loan Bank Board, did so to get Amir to increase his investment--already worth several million dollars--and to replace the predecessor operators "with competent and honest management," the suit said.
A year after Amir took over, regulators seized the S&L and put it in receivership.
The suit asks for $14 million in compensatory damages and at least $90 million in punitive damages.
The suit is a counterclaim to an action that FSLIC itself filed last October against more than a dozen former directors and officers of the S&L, including Amir and the head of the prior management, Dennis M. Fitzpatrick.