Ex-Owner of Vernon S&L; Convicted of Fraud : Thrifts: Don Dixon was found guilty of using the firm’s money to lead an extravagant lifestyle. Its bailout will cost taxpayers $1.3 billion.

A federal jury Thursday convicted Don Dixon, the former owner of Vernon Savings Assn., on 23 counts of fraud, saying his use of the thrift’s money to live extravagantly helped cause its $1.3-billion collapse.

Dixon “was the biggest of the highfliers among the savings and loan crooks,” Atty. Gen. Dick Thornburgh said in a statement after the verdict was announced. “His excessive lifestyle and illegal management practices stood as a symbol of wrongdoing.”

Dixon, 51, was handcuffed and taken to Dallas County Jail, where he was ordered to stay until sentencing, set for Feb. 19.

The jury deliberated for two weeks after hearing six weeks of testimony on the 1987 collapse of the Dallas thrift. Bailing out the depositors has cost federal taxpayers $1.3 billion.

The conviction could result in a sentence of 120 years and fines of $5.75 million.

As he left the courtroom Thursday, Dixon told reporters, “I’ve felt better” but refused to say anything more.

Federal prosecutors said they were satisfied with the verdict. “This verdict makes a substantial statement that such cases can be brought and can be won,” said prosecutor Robert Hauberg.

The government had brought a 38-count indictment against Dixon, alleging that he used federally insured bank funds to run a luxury California beach house, made illegal political contributions and hired women to accompany bank directors and lawmakers to parties and on trips.

Assistant U.S. Atty. David Jarvis, another of the prosecutors, said the jury had found Dixon guilty on all the charges pertaining to his personal benefit from the crimes.

“They related to the corruption of bank officials and the use of $41 million in loans for his personal gain,” he said.

Dixon’s defense attorneys contended that the expenses were legitimate business entertainment costs.

But the government said the jury upheld its contention that the money was being used only for Dixon’s lifestyle.

Prosecution witnesses testified that Vernon deposits, among other things, paid the travel expenses of four women who accompanied and slept with Dixon, two colleagues and a state banking official on a 1985 trip to California.

Former Vernon Senior Vice President Pat Malone said the group flew to California on company and chartered jets, stayed in a five-star San Francisco hotel, traveled in limousines and ate in fine restaurants, all courtesy of the Dallas-based savings and loan.

Government witnesses also told of two pheasant-hunting trips to Kansas in January, 1985, and January, 1986, both paid for by Vernon. On the second trip, witnesses said, four prostitutes accompanied the men, who included Dixon and Linton Bowman III, who at the time was commissioner of the Texas Savings and Loan Department.

Also on the trip was Malone and two other Vernon thrift officers. Malone said he paid the women with a $1,500 cash advance from the company.