BANKING/FINANCE : Institution Dodges 2 ‘Bullets’ in the Form of Potential Buyers
In the mid-’80s, the Bank of San Clemente was in trouble and looking for a buyer to put some new capital into the bank.
It found one, but not before dodging two “bullets,” said its president, Michael Dunahee.
The first bullet, Dunahee said, was San Diego businessman Richard L. Burns. The second was Michael R. Goland, a former Woodland Hills developer who was convicted Tuesday of conspiring to secretly take over a Santa Monica thrift.
Burns outlined a revival plan in 1986 that relied on making risky car loans. Directors thought they had an agreement--until Burns wanted to change a few terms, Dunahee said. The deal fell apart. Burns took control of Far Western Bank in Tustin instead and implemented his car loan plan there. Eventually, Far Western collapsed. Regulators seized and closed Far Western in December.
Goland agreed in 1987 to buy the Bank of San Clemente. But he failed to submit his offer to regulators and soon backed off, saying he couldn’t finance the purchase. The bank sued him, accusing him of breach of contract. While the suit is still pending, Dunahee said it won’t likely go anywhere. Goland has denied any liability.
On Tuesday, Goland was convicted of conspiracy and faces a maximum of 100 years in prison and a $5-million fine for his involvement with Viking Savings & Loan in Santa Monica. He had used $900,000 borrowed from state Sen. Alan Robbins (D-Tarzana) as part of $1.1 million he funneled through 10 friends and business associates posing as independent investors to buy a controlling interest in Viking.
