BANKING/FINANCE

Robert W. Fitzpatrick, longtime head of Teachers Management & Investment Corp. of Newport Beach, has been ousted as chairman and chief executive officer, and his wife, Eileen Tabata, has left her position as executive vice president.

The reason for the ouster was not disclosed. Tabata, who confirmed that her husband had been replaced, would not comment further, and two of the new owners did not return telephone calls.

Maurice Shuman has become chairman and James Martin has become president of TMI. Together, they operate the Martin Shuman Co. in Irvine, which bought a controlling interest in TMI last July. Shuman said at the time that the purchase was primarily for investment purposes and that Fitzpatrick would continue to operate TMI.

Capitalizing on the motto “teachers helping teachers,” TMI employs 300 educators moonlighting as licensed sales agents throughout the state to complement its 30 full-time salespeople in the field and 85 staff employees in Newport Beach.

In the firm’s 20 years, Fitzpatrick built up a $700-million portfolio for teachers by pooling individuals’ funds to buy real estate and make other investments.

But in the mid-1980s the company ran into two roadblocks: a state investigation into allegations that it shortchanged investors in real estate deals, and the insolvency of its 75% owner, Centennial Savings & Loan in Santa Rosa.

The investigation ended last summer without action being taken, and Martin Shuman bought the 75% stake in July from the Federal Savings and Loan Insurance Corp., the receiver for Centennial.

Under a deal providing TMI with $1.2 million in new capital, Martin Shuman Co. picked up additional shares to own 90% of the company. The remaining shares are owned by about 135 teachers throughout the state. Fitzpatrick and Tabata own 10% of Martin Shuman, and Brentwood Associates, a Los Angeles investment partnership, owns a 42% stake in the holding company.