October 3, 1991 |
Accounting Firm Wins Thrift Case: An accounting firm cannot be held responsible for the collapse of Western Savings Assn., a federal judge has ruled. U.S. District Judge Barefoot Sanders dismissed a $560-million lawsuit filed by the Federal Deposit Insurance against Ernst & Young in connection with the 1986 failure of Western Savings, based in Dallas. The FDIC alleged that a predecessor of the accounting firm, Arthur Young & Co., should have uncovered problems in 1984 and 1985 audits.
June 27, 1992 |
RTC Counsel Barred From Suits: The Resolution Trust Corp. has barred Gerald L. Jacobs, its general counsel, from considering potential lawsuits against former savings and loan officials while his own links with a failed thrift are being investigated. The RTC's inspector general, the agency's internal watchdog, is looking into the relationship between Jacobs and a real estate company, Dicor Inc., that did business with the now-defunct Western Savings & Loan Assn. in Phoenix.
March 9, 1993 |
Charles W. Knapp Pleads Innocent: Knapp, whose American Savings & Loan was the largest thrift ever to fail, pleaded innocent to charges he defrauded another collapsed S&L by lying to obtain a $15-million unsecured loan that was never repaid. His lawyer insisted that prosecutors are criminalizing what was in effect a character loan to a start-up mortgage banking business. Phoenix-based Western Savings knew all the important financial details about Knapp and the deal, attorney John J. Bartko
December 15, 1993 |
The Securities and Exchange Commission has filed charges against Charles W. Knapp and some of his former business associates, accusing them of taking part in a fraudulent scheme to raise money in the securities market for a Beverly Hills-based bank that eventually failed. The SEC action, filed Monday, was announced Tuesday as Knapp was being sentenced to 6 1/2 years in prison by a Los Angeles federal court for his role in defrauding an Arizona savings and loan.
July 12, 1990 |
Moving against one of the nation's costliest savings and loan failures, a federal grand jury indicted the former chairman of a Texas thrift Wednesday on charges of bank fraud, misapplying funds and making false statements arising from a $700-million Southern California real estate purchase. The defendant, Edwin T. McBirney III, resigned as chairman of Sunbelt Savings Assn. under pressure from federal regulators in 1986.
October 6, 1992 |
The fortunes of Los Angeles financier Charles W. Knapp--once head of the country's biggest savings and loan--have taken a sharp turn for the worse. Citing heavy legal obligations and credit card bills, Knapp and his wife, movie actress Lois Hamilton, filed a Chapter 11 bankruptcy petition in Los Angeles last month to allow them breathing room to reorganize their deteriorating finances.