Ex-CEO Linked to Neil Bush Is Indicted : S&L;: Michael R. Wise is accused of falsifying the books of a Colorado thrift to hide the diversion of $458,000 for his own use. The firm eventually failed.

The former head of a Colorado thrift where President Bush’s youngest son was a director was indicted Thursday on allegations that he diverted $458,000 in bank money for his own use, federal authorities in Denver said.

The three-count indictment also accuses Michael R. Wise, former chairman and chief executive of Silverado Banking, Savings & Loan Assn., of falsifying Silverado’s books to disguise his activities.

The Denver savings and loan, which failed at an estimated cost to taxpayers of $1 billion and became a national symbol of the thrift debacle, at one time included Neil Bush on its board of directors.

The indictment is the first criminal indictment to stem from Silverado’s collapse.

Authorities said the investigation is continuing, but declined to say how many people are being investigated or who they are. Justice Department prosecutor Marvin Collins declined to comment on whether any potential illegal activity being investigated involved Neil Bush, but he did say “there are no untouchables in this investigation.”

According to the indictment, the $458,000 Wise allegedly diverted to himself was part of a $1.45-million loan he received from Silverado Financial Corp., parent of the thrift. Wise represented to Silverado that he would use the money to pay off a bank loan from Denver’s Cherry Creek National Bank, according to the indictment. Instead, authorities allege, he paid off a home mortgage and financed home improvements.

Wise and Neil Bush were among the former Silverado officials who were sued by the Federal Deposit Insurance Corp. for alleged mismanagement of the thrift. The suit was settled in 1991 for $49 million, the bulk of which was paid by an insurance company and a special defense fund Silverado directors set up.

Wise, who now lives near Aspen, could not be reached for comment.

If convicted, Wise faces a maximum punishment of 15 years in prison and a fine of up to $750,000.