P. M. BRIEFING : Judge Orders Convicted Ohio Bank Swindler to Liquidate Assets
A bankruptcy judge today ordered Ohio financier Marvin Warner, convicted of illegally funneling bank funds to a security trading company, to liquidate his assets to pay back some of his $4.5 billion in debts.
Warner, former president of the collapsed Home State Savings Bank of Cincinnati, withdrew his latest reorganization plan Thursday after all but one of the unsecured creditors rejected it. He asked today for another 30 days to develop a new plan, but Bankruptcy Judge George L. Proctor moved the case from Chapter 11 reorganization to Chapter 7 liquidation.
The U.S. Trustee’s Office appointed Daniel Bakst, a West Palm Beach lawyer, to examine Warner’s holdings and lawsuits against him before deciding what to do with his assets.
Among the secured creditors is Home State Savings Bank, which is owed more than $275 million, according to court records. Warner headed the bank before its collapse in 1985.
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