Judge Refuses to Remove Keating Defense Lawyer : Court: The attorney had previously represented co-defendants of the failed S&L;’s owner in civil matters.
A federal judge on Monday refused to disqualify Charles H. Keating Jr.’s lawyer from defending the former Lincoln Savings & Loan owner on criminal charges of bank fraud and racketeering.
U.S. District Judge Mariana R. Pfaelzer indicated that Stephen C. Neal would be able to continue representing Keating even though he previously had represented two co-defendants in civil matters.
The two co-defendants--Keating’s son, Charles H. Keating III, and one of Keating’s sons-in-law, Robert M. Wurzelbacher Jr.--had signed documents waiving any objections based on potential conflicts of interest involving Neal.
Pfaelzer offered prosecutors the option of drafting broader waivers by next Tuesday. She and the defendants and their lawyers could review those drafts to determine if those waivers should be signed by the younger Keating and Wurzelbacher.
Dennis J. Landin and Mark E. Beck, attorneys for Keating’s son and Wurzelbacher, respectively, said their clients intended to sign any reasonable waivers proposed by the prosecutors.
“These are intelligent people, counseled individually by separate attorneys on possible conflicts, and they have decided to waive their rights to object,” said Landin, the chief deputy federal public defender.
Assistant U.S. Atty. David Sklansky had argued that there were a number of possible conflicts. If the younger Keating, for instance, pleaded guilty and testified against his father, Neal would be put in the unethical position of cross-examining a former client.
The 77-count indictment stems from the 1989 collapse of Lincoln and its parent company, American Continental Corp. Lincoln is the nation’s biggest thrift disaster to date, costing taxpayers $2.6 billion. American Continental’s demise wiped out more than $250 million in investments by Lincoln customers, mainly in Southern California.
The indictment also names as defendants Judy J. Wischer, former American Continental president, and Andrew Ligget, the company’s chief financial officer.
