Maryland Probes 5 S&Ls; Linked to Industry Crisis

Maryland is investigating present or former officials in at least five savings and loans involved in the state’s 7-month-old thrift industry crisis, according to reports published Friday.

The investigations into two of the five institutions, including the one whose run on deposits last May touched off the crisis, had been disclosed earlier. The existence of the other three investigations was reported Friday in the Baltimore Sun and the Washington Post.

Among those under criminal investigation are the two former owners of Friendship Savings & Loan Assn. of Chevy Chase, one of three thrifts purchased in October by Chase Manhattan Bank, the papers said, quoting unidentified sources.

The Sun reported that Community Savings & Loan of Bethesda and First Maryland Savings & Loan of Silver Spring are also under state investigation.

But the newspaper said details about those investigations were not available.

The probe of former Friendship owners E. Mitchell Fry Jr. and Anthony C. Koomes, for possible insider dealing, was approved by Gov. Harry Hughes when Chase purchased Friendship on Oct. 31, the reports said.

In October, Chase also bought the troubled Merritt Commercial Savings & Loan of Baltimore and Chesapeake Savings and Loan Assn. of Annapolis after the General Assembly approved legislation permitting the New York bank to enter Maryland. Merritt is one of the two S&Ls; where criminal investigations had been reported. The other is Old Court S&L;, also of Baltimore, now in receivership.