BANKING & FINANCE - June 5, 1993

Keating Conviction Upheld: The state Court of Appeal has affirmed the 1991 securities fraud conviction of former Lincoln Savings & Loan operator Charles H. Keating Jr. The three-judge panel also upheld Keating’s 10-year prison sentence, though it modified the formula used to reach that term. The court said that prosecutors had “amply proven a persistent pattern” of criminal conduct in which Keating failed to provide to small investors critical negative information about the Irvine thrift and its parent company, American Continental Corp. in Phoenix. Keating’s empire collapsed in 1989, and Lincoln has become the nation’s costliest thrift bailout.