Charges Against Keating Called Duplicates, Set Aside

A judge set aside two of four charges brought by regulators seeking to bar former Lincoln Savings boss Charles H. Keating Jr. from the thrift industry but said the charges could be reopened if warranted.

Administrative Law Judge Paul J. Clerman agreed with the Office of Thrift Supervision that the charges essentially duplicate those in a federal criminal indictment against Keating.

Clerman granted the OTS the right to reopen the charges against Keating and six former directors of his American Continental Corp., Lincoln’s parent.

The OTS would do so if the seven are found innocent of the charges at the criminal trial.

In a hearing that began last July in Los Angeles but was put on hold by Keating’s criminal trial in state court, the OTS accused the seven of looting $130.5 million from Lincoln. The hearing will resume April 27 in Phoenix.