Ramona Savings Case : Judge Tentatively OKs Seizure of Mangano Assets

A federal judge tentatively approved government plans Monday to seize $3.4 million in assets of Donald P. Mangano Sr. that allegedly were diverted from the defunct Ramona Savings & Loan Assn.

U.S. District Judge Alicemarie H. Stotler issued the order at the request of the Federal Savings and Loan Insurance Corp., which acted as receiver for Orange-based Ramona after its collapse two years ago. The FSLIC lawsuit against Mangano and others is not scheduled for trial before 1989.

Mangano, who was co-owner of the thrift in 1984, faces trial for bank fraud in connection with his dealings with Ramona. His co-defendant in the case is John Lee Molinaro, a co-owner who bought out Mangano’s interest in the S&L.;

The decision, to be made final Friday, would give the FSLIC authority to begin seizing Mangano assets.

Mangano’s lawyer, Robert Schauer, said the decision will be appealed.

“You can bet your bottom dollar Don Mangano will appeal,” Schauer said. “The government has basically at this point bankrupted him. He has virtually nothing left.”

FSLIC has sued Molinaro, Mangano and others for fraud and breach of trust, claiming $40 million in damages resulting from the alleged looting of the thrift.

The assets in question Monday involved two dividends paid by Ramona in April, 1985, amounting to $2.85 million. Molinaro and Mangano, as sole owners, split the total. Stotler ruled that the payment of the dividends violated state law.

The sum to be collected from Mangano represents the amount of the dividends plus interest, according to Mark S. Lee, attorney for FSLIC.

While Stotler has already approved FSLIC efforts to seize more than $8 million in Molinaro assets, Monday was the first time she entered similar findings against Mangano. To date, FSLIC has seized more than $1.8 million in Molinaro assets, most of it from bank accounts in the Cayman Islands.

Lee said FSLIC will seek to recover the funds by seizing assets that Mangano transferred to his wife and son, including homes in Santa Ana and Sunset Beach.

In a separate criminal case, Mangano faces trial on 28 counts of bank fraud, conspiracy and making false statements stemming from the transfer of a Palm Springs condominium from Ramona to Mangano and then back to the thrift, via straw parties. Molinaro is also a defendant in the case.