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Feds Say David Paul to Get Break:...

From Times Staff and Wire Reports

Feds Say David Paul to Get Break: Federal regulators are willing to grant hardship status to Paul, the ousted chairman of CenTrust, on the condition that he stay on a short financial leash, according to court documents. Paul, known for lavish spending on corporate luxuries and society galas before CenTrust was seized at a loss of $1.7 billion, applied for relief in January. He said he was unable to keep up with his legal bills and other personal and business expenses. The Office of Thrift Supervision, the federal agency in charge of cleaning up the national thrift crisis, attached an order approving the hardship request to a response to motions filed in the government’s civil proceedings against Paul. But OTS crafted the order in such a way as to keep tight control over Paul’s spending, requiring him to provide monthly bank statements to verify allowable expenses.


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