Ranbir S Sahni

The former chairman of defunct American Diversified Savings Bank in Costa Mesa has stepped up his litigation battles with federal regulators by filing a $10-million racketeering lawsuit accusing a thrift regulator and two managers hired to run the bank. Ranbir S. Sahni, already embroiled in numerous court fights with regulators, claims that a federal agent and two managers conspired to ruin him financially "for the purpose of rendering (him) financially unable to engage in litigation."

The former chairman of defunct American Diversified Savings Bank in Costa Mesa has stepped up his litigation battles with federal regulators by filing a $10-million racketeering lawsuit accusing a thrift regulator and two managers hired to run the bank. Ranbir S. Sahni, already embroiled in numerous court fights with regulators, claims that a federal agent and two managers conspired to ruin him financially "for the purpose of rendering (him) financially unable to engage in litigation."

An outside law firm handling litigation and corporate affairs for American Diversified Savings Bank has run up at least $8.1 million in billings in the 18 months since the Costa Mesa S&L was seized by regulators. The huge legal bills from the San Francisco law firm of Pettit & Martin are among the highest ever run up by a failed S&L, a top Federal Home loan Bank Board official said late last week.

American Diversified Savings Bank's ousted chairman, Ranbir S. Sahni, was handed a setback in his battle with federal regulators Monday when an Orange County judge ruled that he had no right to take operational control of $171 million worth of real estate partnerships in which the S&L had an interest. The Federal Home Loan Bank Board seized the Costa Mesa-based S&L 20 months ago after declaring it insolvent.

American Diversified Savings Bank's ousted chairman, Ranbir S. Sahni, was handed a setback in his battle with federal regulators Monday when an Orange County judge ruled that he had no right to take operational control of $171 million worth of real estate partnerships in which the S&L had an interest. The Federal Home Loan Bank Board seized the Costa Mesa-based S&L 20 months ago after declaring it insolvent.

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Ranbir S. Sahni, former chairman and majority owner of American Diversified Savings Bank, has asked an Orange County judge to disqualify a law firm from representing the savings institution and two other defendants in a lawsuit he filed last month. Sahni, who was ousted from the Costa Mesa savings institution in February, 1985, when regulators declared it insolvent and seized control, claims that the law firm of Pettit & Martin has a conflict of interest in the case.

Ranbir S. Sahni, the ousted chairman of American Diversified Savings Bank, on Wednesday appealed an Orange County Superior Court ruling that had transferred control of 41 real estate limited partnerships from him to the Costa Mesa-based S&L. Earlier this month, Sahni seized control of the partnerships from an S&L subsidiary by declaring that the subsidiary was insolvent. A judge ruled Monday, however, that the subsidiary was not insolvent and that Sahni wrongfully took over the operations.

Former owners of two defunct Orange County savings and loans said Tuesday that they have nothing to fear from a twice-convicted bank swindler who has agreed to testify about allegedly phony deals he had with their thrifts. Charles J. Bazarian Jr., an Oklahoma loan broker already serving a two-year term for a 1987 bank fraud conviction, is expected to plead guilty today in Oklahoma City to charges he defrauded the two S&Ls and the U.S. Department of Housing and Urban Development.

An outside law firm handling litigation and corporate affairs for American Diversified Savings Bank has run up at least $8.1 million in billings in the 18 months since the Costa Mesa S&L was seized by regulators. The huge legal bills from the San Francisco law firm of Pettit & Martin are among the highest ever run up by a failed S&L, a top Federal Home loan Bank Board official said late last week.

A bankrupt company owned by Ranbir S. Sahni, deposed head of the failed American Diversified Savings Bank in Costa Mesa, has sued federal regulators and others for $200 million on claims that they interfered with the operation of the company and conspired to destroy it. The company, American Development Corp., now in Huntington Beach, had been the manager of 62 real estate investment limited partnerships that were controlled by American Diversified.

In an effort to generate cash, American Diversified Savings Bank plans to lay off nearly 170 more employees and sell about 15 real estate properties and its technical activities division, which invested in some of the untraditional assets that drew the wrath of state and federal regulators and contributed to the S&L's recent insolvency. The technical division's physical assets include several windmill farms in Northern California.