LOCAL : Keating Enters Not Guilty Plea
In a strong, firm voice, Charles H. Keating Jr. announced this morning in criminal court that he is “absolutely not guilty” of 42 state securities fraud charges stemming from his company’s bond sales at Lincoln Savings & Loan branches.
Keating, former chairman of Phoenix-based American Continental Corp., appeared relaxed and confident as he and three co-defendants completed their arraignments in Los Angeles County Superior Court. The other three, all former executives, also pleaded not guilty.
After the brief hearing, Keating waved to several family members and friends as he was led back to the Los Angeles County Jail, where he has remained since Sept. 18. He has been unable to post a $5-million bail set by a Superior Court judge. Keating is waiting for the state Supreme Court to act on his request to lower the bail.
Superior Court Judge Gary Klausner assigned the case to Judge Lance A. Ito. Ito, a Los Angeles County prosecutor for 10 years, was appointed to the Municipal Court bench in 1987 and elevated to the Superior Court last year.
The indictment represents the first criminal charges brought against anyone since the collapse of American Continental and Lincoln in April, 1989.
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