February 22, 1992 |
David Paul Must Surrender on Contempt Charge: The ousted chairman of CenTrust Savings Bank of Miami was sentenced to 18 months in prison after refusing to give documents to a grand jury investigating the thrift's $1.7-billion failure. U.S. District Judge Stanley Marcus found Paul in contempt of court and gave him until Monday afternoon to surrender to U.S. marshals.
March 8, 1989 |
Florida banking regulators have ordered CenTrust Savings Bank, which lost $10 million in its most recent quarter, to sell a $12-million Peter Paul Rubens painting hanging in its chairman's house. The savings bank bought "Portrait of a Man as Mars" by the Flemish Rubens, 1577-1640, from Sotheby's auction house for $12 million plus a $1.2-million commission last fall. "It's a beautiful painting," said CenTrust Chairman David Paul.
February 29, 1992 |
A federal grand jury has indicted David L. Paul, the former CenTrust Savings Bank chairman, on fraud charges arising from the alleged sham purchase of $25 million in securities by BCCI, authorities said Friday. James McAdams, acting U.S. attorney for southern Florida, announced that a federal grand jury had issued the indictment against Paul, who was jailed earlier this week on contempt of court charges. The indictment listed counts of conspiracy and other crimes.
August 18, 1991 |
Two of the great financial scandals of the early 1990s--the collapse of the savings and loan industry and the strange case of the Bank of Credit & Commerce International--are starting to converge as federal investigators unravel hidden ties between the two. Uncovered only in the last few days, the link between the S&L mess and the BCCI affair already is threatening to lead to a new round of charges of political influence-peddling in Washington.
June 30, 1990 |
Great Western Financial agreed Friday to buy CenTrust Federal Savings Bank in Florida in the biggest taxpayer bailout yet of a savings and loan. The deal marks the end of a thrift that came to symbolize some of the worst examples of greed and gluttony in the nation's thrift debacle. Taxpayers will pick up a bill of about $1.7 billion for CenTrust. Great Western, the Beverly Hills parent of Great Western Bank, will pay $86.4 million for CenTrust's 71 branches and $5.2 billion in deposits.
April 26, 1990 |
Federal investigators looking into fraud at several of the largest failed savings and loans are hoping for a boost once Michael Milken begins sharing information with the government, sources say. The Securities and Exchange Commission in particular is conducting an intensive investigation of whether Lincoln Savings & Loan Assn.