S&L; Files Fraud Suit Against Businessman
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Mission Viejo-based Beverly Hills Federal Savings and Loan Assn. and its BH Mortgage Co. filed a $15 million fraud suit against Swiss businessman Werner K. Rey in U.S. District Court in Los Angeles late Thursday. The suit alleges Rey and six corporations he controlled “exacted substantial profits from plaintiffs by means of fraud, misrepresentation” and violations of state and federal securities laws.
Henry Silberberg, attorney for Beverly Hills S&L;, would not comment on exactly how much money was involved in the allegedly fraudulent transactions. Silberberg said Rey has offices in London and Switzerland.
According to the suit, Rey borrowed millions of dollars from the S&L; between January, 1982 and April, 1985 for various hotel, apartment and property transactions throughout the U.S. and abroad. Beverly Hills Federal, formerly Beverly Hills Savings, was taken over by federal S&L; regulators in April.
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