FCA Chairman Ties Company Departures to Canceled Plan

Financial Corp. of America Chairman William Popejoy revealed Tuesday that a “whole bunch of people,” including some company officers, quit the firm after Popejoy canceled a program that allowed FCA employees to buy foreclosed real estate before it was listed on the market.

In remarks at FCA’s annual shareholders meeting in Irvine, Popejoy said the program was halted in late 1984 because some employees apparently were abusing the privilege.

“Sometimes employees bought the property using inside information” or acted as brokers by turning around and reselling the property, he said. The program involved property that FCA owned by foreclosing on delinquent borrowers. Popejoy declined to name the persons involved, but he said they included officers but no directors.

FCA’s top management and many of its directors left the firm after Popejoy was named chairman and chief executive in August, 1984. Popejoy replaced Charles W. Knapp, who was forced to resign by federal regulators.

Popejoy’s remarks to shareholders came amid recent revelations that FCA’s problem loans have continued to mount this year. FCA, parent company of American Savings & Loan, is also fighting 30 lawsuits filed by builders who are challenging the propriety of some FCA lending practices in the early 1980s.

FCA shareholders approved a measure that increased the number of authorized shares of common stock from 100 million to 200 million. Company officials said the increased authorization is necessary should FCA decide to raise capital by selling additional shares. FCA now has about 36 million shares outstanding.