SECURITIES
From Times Staff and Wire Reports
Keating Aide Details Phony Deals: Charles H. Keating Jr.’s former top aide testified about how the former Lincoln Savings & Loan owner set up phony land sales, creating sham profits that helped him sell junk bonds to investors. Judy J. Wischer, former president of Keating’s American Continental Corp., described 11 sham deals that supposedly generated $124 million worth of gains. But the profit recorded in the deals was phony, she said, because oral promises and side agreements showed that Lincoln subsidiaries still controlled the properties. Wischer is expected to continue her testimony today at the federal fraud and racketeering trial in Los Angeles of Keating and his son, Charles Keating III.
