Craig Chairman Increases His Citadel Voting Power

Financier James J. Cotter has increased his voting power in Citadel Holding Corp., the Glendale-based parent of Fidelity Federal Bank, to 18.5% of Citadel’s stock.

Cotter is chairman and the controlling stockholder of Craig Corp., which owns 8.9% of Citadel. According to a filing with the Securities and Exchange Commission, Cotter also acquired rights to vote an additional 9.6% Citadel stake held by Hecco Ventures I.

Hecco Ventures I is an investment partnership headed by Michael R. Forman that has also been associated with Cotter.

Two months ago, Cotter got approval from the U. S. Office of Thrift Supervision to acquire control of Citadel, said Edward L. Kane, who is chairman of Citadel and president of Craig Corp. Cotter has not publicly indicated whether he plans to buy more Citadel stock.

However, Craig’s latest SEC filing states that Cotter does want a seat on Citadel’s board and plans “to become actively involved in the management of Citadel.”