A federal court jury Wednesday convicted Orange County businessman John F. Hayden on 27 counts of defrauding 22 banks and thrifts by issuing millions of dollars in worthless loan guarantees.
The jury acquitted the Santa Ana resident of one count of interstate transportation of stolen property.
The jury convenes again today to consider a final, 29th count of conspiracy, a prosecutor said.
In an 11-week trial, prosecutors alleged that Hayden used Glacier General Assurance Co. of Montana--of which he was president--to induce lenders to make millions of dollars in real estate loans that were never repaid.
Glacier did that by issuing bonds guaranteeing repayment of the loans. Glacier, which had an office in Tustin, was later declared insolvent.
Among Hayden's victims, prosecutors said, was the giant Bank of America, which sued Hayden and others in what it alleged was a scheme to swindle $95 million.
The persons who got the loans never used them to market a condominium project in Oregon or build homes in Chatsworth, as was intended by the lenders. Instead they diverted millions into their own accounts, prosecutors alleged.
Prosecutors said about $20 million in loans from 22 lending institutions was involved in the fraud. Hayden was first indicted with six other men in 1986. All but one have been convicted.