Silverado Thrift Figure Walters Also Has Desert Retreat : S&Ls;: The Denver developer, who received loans with the help of President Bush’s son Neil, has a $1-million home in Indian Wells--listed in his wife’s name.
Besides the $1.9-million Newport Beach estate and the oceanfront home in Laguna Beach--disclosure of which has fueled outrage on Capitol Hill--Denver developer Bill L. Walters has a $1-million desert retreat in the exclusive Vintage Club in Indian Wells, according to records reviewed Thursday.
This home, like the others, is in the name of Jacqueline Walters, his wife.
The chairman of a House banking panel said Thursday that he will force Walters--who defaulted on close to $100 million in loans he received with the help of Neil Bush--to reappear before Congress to explain his lavish lifestyle.
Rep. Frank Annunzio (D-Ill.), chairman of the House financial institutions subcommittee, said he will subpoena Walters if necessary to tell why he previously testified under oath that he was broke.
“Bill Walters may think he’s thumbing his nose at the taxpayers, but I am going to make certain that they find out what’s going on,” Annunzio said in a statement. “I am writing to Mr. Walters to ask him to come back to the Banking Committee and tell the world how a man who defaulted on nearly $100 million in loans is living in such luxury. If he doesn’t come voluntarily, I am prepared to seek a subpoena.”
Walters and his lawyer both refused comment Thursday.
Riverside County records reviewed Thursday revealed the Walters family’s third home--a $1-million condominium in Indian Wells.
The posh country club--whose members include household-products magnate Raleigh Shaklee and liquor magnate Jack Hennessy--is the site of the Vintage Chrysler International, one of the stops on the Senior PGA tour. Vintage has two 18-hole golf courses, 11 tennis courts and an Olympic-sized pool.
To be a member, one must purchase property there. The Walters’ 2-bedroom, 5-bathroom home--which he first bought in the early 1980s--is now listed in the name of his wife Jacqueline.
Vintage membership director Sue Robertson said Walters--who has been a member since at least 1983--is current on his dues, which run $7,500 a year.
Jacqueline Walters--according to a trust deed drawn up at Palm Desert National Bank--took out a $550,000 loan in March, using the Vintage home as collateral, though there is no record of what was done with the money.
On Wednesday, The Times reported that Walters was living in a $1.9-million gated estate in Newport Beach, purchased by a trust for his wife in February. The oceanfront mobile home in Laguna Beach--bought in May--is also listed in his wife’s name.
The Walterses spent several months in the posh Four Seasons Hotel Newport Beach--which charges $250 and up a night--while their new home was being renovated.
Walters testifed under oath before the House Banking Committee last month that he was pretty much a pauper following the collapse of his Denver-based real estate empire, Bill L. Walters Cos.
“I have a negative net worth,” he testified.
Disclosure of Walters’ lifestyle this week set off a firestorm of protest on Capitol Hill.
House Democratic leaders proposed legislation Wednesday that would allow regulators to go after the assets of individuals--such as Walters--whose loan defaults led to a thrift’s collapse. They are proposing that the government be allowed to seize any assets purchased in the last five years.
Walters--a onetime business associate of Neil Bush--defaulted on $96 million in loans from Silverado Banking, Savings and Loan Assn. in Denver, where the President’s son was a director.
Bush is under investigation by federal authorities for possible conflict of interest for voting to approve loans to Walters while allegedly failing to disclose their partnership in JNB Exploration, an oil exploration firm.
Silverado collapsed in 1988, and its cleanup is expected to cost about $1 billion. It is estimated that the Walters defaults will cost taxpayers about $50 million once all of the buildings that his company constructed are sold.
In Washington Thursday, a Justice Department spokesman declined to “confirm or deny any investigative activity” involving Walters.
Bill and Jacqueline Walters--his second wife--were married on Saturday, Nov. 15, 1986.
He formed the Walters Trust I--which is in her name and is the entity that purchased the Newport Beach home--on Nov. 16, 1986. And he transferred his Indian Wells condominium to her on Nov. 17, 1986.
Jacqueline Walters, whose family lives in Tennessee, was an insurance saleswoman when she met Walters. Society writers in Denver--and one of Walters’ relatives--all said she does not come from a wealthy family.
The Walterses moved to Orange County five months ago. He told the House Banking Committee last month that he was making every effort to repay creditors.
“I have elected to spend the last year and a half working diligently with my lenders, restructuring, staying alive for another day, so that I can pay every dime back if I can,” he said.
Times Staff Writer Jenifer Warren in Riverside contributed to this report.
