Keating Loses in Attempt to Drop Restitution Claim

The head of the Office of Thrift Supervision said Monday that he has denied requests by former Lincoln Savings & Loan owner Charles H. Keating Jr. to dismiss the $130.9-million restitution claim that the agency has filed against Keating and six former associates.

T. Timothy Ryan, OTS director, rejected Keating’s contention that the agency lacked authority to take administrative action in connection with the collapse of the Irvine-based thrift. He also rejected Keating’s contention that he should not rule on the dismissal motion because he had prejudged the case.

The administrative action against the Keating group is the biggest claim ever filed by the OTS.