Jury Convicts Ex-Irvine Banker of Fraud

A federal jury Wednesday convicted the former chief executive of an Irvine bank in connection with a loan scheme to steal more than $1.6 million through fraud, the U.S. attorney’s office said.

Ottavio Antonio Angotti, 56, of La Habra was convicted of five counts of causing false entries to be recorded in the books of the now-defunct Consolidated Savings Bank. The verdict was handed down after an 11-day trial before U.S. District Judge Manuel Real.

Angotti, formerly the bank’s chief executive, was found to have made false entries in the books to hide sham loans from federal regulators and the bank’s independent auditor. The loans were made to friends of Angotti and Raymond Arthun, an officer and director of Pyrotronics Corp. in Anaheim, a fireworks maker. The sham loans were funneled through Arthun’s company, prosecutors said.

The bank, which once had $84 million in assets, was seized in May, 1986, by regulators, who alleged that it was insolvent and had made improper loans. It was closed three months later.

Angotti faces a maximum penalty of 25 years in prison and $1.2 million in fines. Sentencing was scheduled for July 26.