Ex-Lincoln S&L; President Pleads Guilty

Former Lincoln Savings & Loan President Ray C. Fidel pleaded guilty to federal securities fraud charges Monday, becoming the first of the thrift’s former executives to admit to criminal wrongdoing.

Fidel, who was once closely linked to former Lincoln owner Charles H. Keating Jr., pleaded guilty in Los Angeles federal court. His case is tied to a wide-ranging investigation into the $2.6-billion failure of the Irvine-based thrift, and his plea could strengthen authorities’ cases against Keating. The plea agreement, which is secret, most likely recommends leniency for Fidel in exchange for his testimony against Keating.

Fidel, 33, of Newport Beach, faces a maximum sentence of 10 years in prison, a $500,000 fine and payment of undetermined restitution.

In entering his plea, Fidel told U.S. District Judge Harry L. Hupp that he misrepresented the safety of bonds sold to Lincoln customers. The junk bonds were issued by American Continental Corp., Lincoln’s parent, and sold in the S&L;’s branches.

More than 20,000 investors lost their money--more than $200 million--when American Continental filed for bankruptcy in April, 1989. The next day, federal regulators seized Lincoln.