RTC Suing Ex-Client of Its Top Attorney

Gerald L. Jacobs, general counsel to the Resolution Trust Corp., formerly represented a real estate development company accused in a $1.3-billion RTC lawsuit last week of participating in “sham” land deals with now-defunct Western Savings & Loan Assn.

Transactions involving Dicor Inc. of Phoenix were described in the civil racketeering case filed Saturday against some of Western’s former owners and borrowers. Dicor, which had defaulted on $39 million in loans to Western, is the subject of a separate bankruptcy proceeding. Dicor was not named as a defendant in the racketeering case.

Jacobs represented Dicor and its wholly owned subsidiary, LTG Investments Inc., for at least 10 years, according to public records.