Probe Clears 3 in Lincoln Bond Approval
No criminal charges will be filed against three associates of former Gov. George Deukmejian who played roles in state approval of $250 million in bonds sold through the offices of Lincoln Savings & Loan, Sacramento Dist. Atty. Steve White announced Friday.
The bonds proved worthless when the issuer--the S&L;’s parent, American Continental Corp.--went into bankruptcy in April, 1989.
White concluded that former state corporations commissioners Franklin Tom and Christine Bender and Deukmejian’s chief fund-raiser, Karl M. Samuelian, had not broken California law in their dealings with the Irvine-based S&L; and American Continental.
As a political fund-raiser, Samuelian obtained $250,000 from Lincoln, its owner Charles H. Keating Jr. and his business associates. As an attorney, Samuelian represented the parent company before state regulators. White said that his office tried to determine whether Samuelian had acted as a lobbyist for Keating’s companies without registering as state law requires. But the prosecutor concluded that Samuelian’s action “did not amount to lobbying.”
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