3 Ex-Officers of Home S&L; Found Guilty in ESM Case

Former Home State Savings Bank owner Marvin Warner and two other officers of the defunct savings and loan were found guilty Monday of state charges stemming from an investment plan that triggered a statewide financial crisis.

All face possible prison terms and fines, although Warner and one co-defendant were found not guilty on dozens of other charges.

Warner, who was U.S. ambassador to Switzerland during the Carter Administration, was convicted of six unauthorized acts in Home State’s investments with ESM Government Securities Inc. of Fort Lauderdale, Fla. He was also found guilty of three counts of securities violations for misrepresenting the company’s net worth in a 1984 bond issue.

The 67-year-old Warner, who faces up to 13 1/2 years in prison, was found not guilty of 35 unauthorized acts and 41 counts of misapplication of funds.

The jury announced its verdict in its 10th day of deliberations. The trial in Hamilton County Common Pleas Court lasted 16 weeks, and the jury heard from 42 witnesses.

David Schiebel, 56, a former Home State president, was found not guilty of 41 counts of willful misapplication of funds and 41 unauthorized acts, but was found guilty of three counts of securities violations. He was found not guilty of a fourth securities count.

Burton Bongard, 45, another former Home State president, was found guilty of 41 counts of willful misapplication of funds and 41 unauthorized acts.

Although Schiebel and Bongard expressed shock at the verdicts, Warner said: “Given the climate in Hamilton County and all the pretrial publicity, it’s not surprising. I am not bitter. I am just disappointed in the criminal justice system. We’re going to fight this thing in the appeals.”

Bongard and Schiebel expressed disbelief at the verdicts.

“I’m bewildered. I’m completely bewildered,” Bongard said.

“I am in a state of shock. I can’t believe they convicted me,” Schiebel said. “I am an honest and an honorable man, and I have been that way all my life.”

Gov. Richard Celeste, who appointed Warner to the state Building Authority and received campaign money from him, said the case was far from over.

“I am sure there will be appeals, and these long and complicated legal proceedings will continue.”