The Keating Verdict
Arizona businessman Charles H. Keating Jr., found guilty Wednesday of securities fraud, formerly headed Lincoln Savings & Loan in Irvine. Lincoln’s collapse in 1989 is expected to cost taxpayers more than $2.5 billion, making it the largest thrift failure in history.
Highlights
1. Keating is found guilty on 17 of 18 counts of securities fraud.
2. Jurors find that he exercised great control over all corporate functions, including bond sales.
3. Bondholders win an emotional victory, boost for civil litigation seeking $250 million.
What’s Next
1. Keating faces a maximum sentence of 10 years in prison, $250,000 fine, on Feb. 7.
2. Defense will appeal verdict.
3. Federal grand jury indictment expected soon.
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