No 2nd Trial in N. America S&L; Case

A federal judge here has granted a motion by federal prosecutors to forgo a second trial to see if convicted thrift consultant Janet Faye McKinzie must relinquish millions of dollars in assets.

McKinzie was convicted last month of looting the now-defunct North America Savings & Loan in Santa Ana.

She was the beneficiary of a $10-million life insurance policy held by the thrift’s chairman, Duayne D. Christensen, who died in a mysterious car crash just nine hours before regulators seized the thrift in 1987.

Despite its decision to drop the forfeiture hearing, the federal government is expected to go after McKinzie assets when she is sentenced in July by asking for heavy fines and restitution.

McKinzie, 40, and her assets are also the target of a civil lawsuit filed by the Federal Savings and Loan Insurance Corp.