Texas S&L; Accused of Supplying Prostitutes: A...

Texas S&L; Accused of Supplying Prostitutes: A federal indictment alleges that executives of a troubled savings and loan used customers’ funds to provide prostitutes, hunting trips and other perks to a former Texas savings and loan commissioner while he supervised the Dallas thrift. The 37-count indictment also alleges that Patrick G. King, former president of Vernon Savings Assn., illegally used the thrift’s money to make $55,000 worth of political contributions to several congressmen, including former House Speaker Jim Wright (D-Texas) and U.S. Rep. Jack Kemp (R-New York). King was the state’s deputy thrift commissioner before he joined Vernon. Vernon Savings was closed by federal regulators in November of 1987 with losses totaling more than $1.3 billion.