Parker Automotive Chief Resigns Post
Michael E. Parker resigned Tuesday as chief executive of Parker Automotive Corp. of Costa Mesa, saying his ongoing legal problems were interfering with the company’s operations.
The resignation was a result of a compromise reached Monday in U.S. Bankruptcy Court between Parker Automotive and creditors of another Parker-owned company, Parker North American Corp. The court also agreed to vacate a temporary receivership of Parker Automotive.
Parker, who founded both companies, is expected to be replaced as chief executive by Ronald L. Cedillos, a Parker Automotive director and president of Cedillos Testing Co., a Long Beach aerospace company. Parker, who is also chairman, will remain as a director and will be involved in sales and marketing for Parker Automotive.
In announcing that he was giving up day-to-day control of the company, Parker made reference to claims against him and a previous statement that he would step aside if those problems interfered with Parker Automotive’s operations.
“Recent events have convinced me that the time has come for me to do just that,” he said in a statement.
Parker’s legal problems surfaced when he was sued this summer by Columbia Savings & Loan Assn. of Beverly Hills in federal court in Los Angeles. The thrift alleged that Parker and Parker North America, which leased bank equipment to financial institutions, defrauded it of as much as $13 million. Among other things, Columbia alleges PNA, which filed for Chapter 11 bankruptcy protection in March, 1989, paid kickbacks to a Columbia official.
A bankruptcy examiner’s report also recently found that millions of dollars of Columbia’s money was traced to Parker’s personal bank accounts, the accounts of his family and of his business associates.
The FBI and Internal Revenue Service also are investigating PNA records and some of Parker’s activities, according to court documents.
Creditors have alleged that Parker improperly moved $3.5 million from PNA to Parker Automotive before the leasing company filed for bankruptcy last year. They obtained a court order effective Nov. 19 putting a receiver in control of Parker Automotive.
Parker has denied any wrongdoing.
“I cannot allow the confusion that is generated by the outrageous allegations being made against me to interfere with the growth and potential of the company (Parker Automotive),” he said in a statement Tuesday.
