Judge Denies Convicted S&L; Owner Bail

A federal magistrate ruled today that former Texas savings and loan owner Don R. Dixon will remain in jail until his sentencing in February on 23 counts of misusing thrift funds.

U.S. Magistrate John Tolle heard Dixon, his wife and 16 other supporters testify almost two hours before he ruled. Dixon, dressed in orange prison coveralls, was returned to a federal correction facility.

Witnesses said Dixon was a good family man and a person who would keep a promise. Dixon told the judge that he could not live as a fugitive.

Tolle said Dixon had failed to show that he would not be a flight risk. Prosecutors asked that the former thrift owner remain in jail.

The hearing was called after 80 letters were written to U.S. Judge Joe Fish asking that Dixon be released until his sentencing date Feb. 19. His 6-year-old granddaughter was among the letter writers.

“Dear judge,” she wrote. “Can big daddy get out of jail? He will not leave town. Love, Candice.”

The former owner of Vernon Savings & Loan was convicted of using thrift funds to bankroll lavish parties at a Solana Beach, Calif., home where he entertained politicians and regulators with prostitutes. He was acquitted on charges of using the funds to make illegal political contributions.

Vernon’s failure in 1987 cost the taxpayers $1.3 billion.

Atty. Gen. Dick Thornburgh has called Dixon “the highest of the high fliers among the savings and loan crooks.”