LOCAL : Keating’s Bail Still $5 Million; Other Defendants Get Reduction
A Superior Court judge today rejected appeals to reduce Charles H. Keating Jr.’s $5-million bail and sent him back to county jail to await arraignment on a 42-count state grand jury indictment.
Judge Gary Klausner reduced the $1-million bail set for each of three co-defendants but rejected arguments that Keating was not a flight risk and that it hadn’t been shown the alleged crimes were serious.
“There has been a picture painted here . . . of a person who has creditors knocking at the door,” the judge said at the end of a bail-reduction hearing.
Keating is the central figure in the collapse of Lincoln Savings & Loan, which was owned by Keating’s holding company, American Continental Corp. of Phoenix. The bailout of Lincoln is estimated to cost $2 billion.
The four are charged with bilking investors out of life savings by selling them worthless American Continental “junk” bonds at Lincoln branches.
The judge also noted the many other legal actions against Keating, calling them “significant reasons not to stick around.”
“Now you’re facing the possibility of 10 years in the state penitentiary,” he said.
Bail for Judy Wischer, 42, former president of American Continental, was reduced to $200,000. Bail for Ray C. Fidel, 32, former president of Lincoln, and Robin S. Symes, 37, former chief executive officer of Lincoln, was reduced to $100,000 each.
