Advertisement

BRIEFLY

November 10, 1987

John L. Molinaro, chairman of Ramona Savings & Loan before it was seized by regulators 14 months ago, must repay $6.4 million that he indirectly obtained from the Orange-based thrift, a U.S. District judge ruled in Los Angeles. In a partial judgment in a $40-million civil fraud suit filed against Molinaro by the Federal Savings & Loan Insurance Corp., Judge Alicemarie H. Stotler decided that Molinaro wrongly received the money in a scheme to sell his 100% ownership of the S&L in early 1986. The funds used by a private buyer to purchase Molinaro's shares, the judge ruled, were actually provided by the S&L through a series of loans and kickbacks. The FSLIC, which is liquidating Ramona, claims that Molinaro defrauded the S&L of $11.1 million and was responsible for the loss, through mismanagement, of $29 million more.

Advertisement
Los Angeles Times Articles
|
|
|