OTHER NEWS - April 29, 1992

Keating Hospitalized: Former Lincoln Savings & Loan operator Charles H. Keating Jr., sent to prison three weeks ago for 10 years on his state securities fraud conviction, was hospitalized Tuesday in Phoenix for an elbow infection. Keating had been transferred to Phoenix from the California State Prison at Wasco to testify at a hearing called by the Office of Thrift Supervision. The cause of the infection was unknown, but Keating was expected to remain in the hospital overnight before being returned to California, where he is awaiting a decision on what prison he will be assigned to. Keating, who was transferred to Phoenix on Sunday, refused to testify at the civil OTS enforcement hearing Monday, invoking his Fifth Amendment privilege against self-incrimination. He and six other former executives of Lincoln’s parent company, American Continental Corp., are accused of looting the Irvine thrift of $36.5 million in two allegedly fraudulent transactions. The OTS reduced the amount previously sought--a record $130.5 million--after dropping two charges that were covered by the federal indictments of Keating and others. Trial on the criminal charges is scheduled for Aug. 4.