Agency Files Huge S&L; Fraud Suit: Federal...
From Times Staff and Wire Reports
Agency Files Huge S&L; Fraud Suit: Federal bank regulators have filed a $560-million lawsuit against the former owner of Western Savings Assn., contending that he defrauded the failed thrift of at least that much money. The Federal Deposit Insurance Corp. also accuses Jarrett E. Woods Jr. of spending $7 million of depositors’ money on himself during the thrift’s final months in 1986. No criminal charges have been filed against Woods. The lawsuit is one of the largest ever filed by the government against a savings and loan owner. It was filed Friday in Dallas but not released until Tuesday.
