Ex-Owner of S&L; That Sparked Ohio Crisis Sentenced to Prison

Marvin L. Warner, the former owner of Home State Savings Bank, was sentenced Monday to 3 1/2 years in prison and ordered to pay $22 million in restitution for his role in the collapse of the thrift that triggered Ohio’s savings and loan crisis in 1985.

Common Pleas Judge Richard Niehaus ordered Warner jailed immediately unless he could post a $22-million bond in cash and securities. Warner’s lawyers said he couldn’t meet the bond and would spend the night in jail.

Within minutes, Warner, a millionaire who was ambassador to Switzerland in the Carter Administration, was taken to the Hamilton County jail, where a deputy said he could be placed in a section occupied by a co-defendant, former Home State President Burton Bongard.

William Jeffress, chief attorney for Warner, said his lawyers would argue today before a three-judge state appeals panel to have Warner released.

Warner also was to serve five years probation after the prison term.

David Schiebel, another former Home State president, was sentenced to three 1 1/2-year prison terms, but Niehaus said he would reduce the actual time served to six months.

Sentencing for Bongard was delayed until today because of what Niehaus described as confusion over a change in law concerning penalties on the

Warner, 67, dabbed at his eyes with a handkerchief as his lawyers presented character witnesses, including former Ohio Gov. John Gilligan, who asked for leniency.

“I would not recommend to any public official that you do other than what is proper, what is right,” Warner told the judge. “My suffering is unimportant, compared to the depositors in the case.”

Warner, a former chairman of the Ohio Board of Regents and the Ohio Building Authority, added: “There never has been any question about my honesty or integrity. My request would be that you give me the same justice that you would to any individual.”

Former Home State depositors who were cut off from their money for three months by the March, 1985, failure of the Cincinnati-based thrift sent Niehaus letters urging him to punish the three.