U.S. Suit Seeks Accounting of Keating’s Assets
The Justice Department filed suit Friday against Charles H. Keating Jr., seeking to force the former operator of failed Lincoln Savings & Loan to turn over an audited accounting of his assets.
The lawsuit, filed in U.S. District Court in Los Angeles, seeks to obtain court enforcement of an administrative order issued last week by the Office of Thrift Supervision for an accounting of Keating’s assets.
The OTS also is seeking to force Keating, chairman of Phoenix-based American Continental Corp., to pay restitution of $40.9 million involving transactions with Lincoln. The failure of the Irvine-based thrift, seized by federal regulators in April, 1989, is expected to cost taxpayers about $2 billion.
The OTS administrative claim, in the form of a cease-and-desist order issued Aug. 9, requires Keating to reveal his finances within five days. Keating has repeatedly contended that he is broke. The order also asked that he give the government advance notice of any transaction involving more than $5,000.
In a statement, the Justice Department said discussions between a Keating attorney and the government failed to produce an agreement on Keating’s compliance with the OTS order, prompting the lawsuit.
