Arrest Order Issued for Missing Ex-S&L; Official

Ottavio A. Angotti, former chairman of an Irvine savings and loan, has dropped out of sight after being convicted of falsifying thrift records and indicted in a separate case alleging fraud in helping his son obtain a home loan.

A federal judge issued a fugitive warrant for the arrest of Angotti, a La Habra resident. Angotti, 56, hasn’t been seen since Memorial Day when he was supposed to check into Scripps Hospital in San Diego for surgical tests to determine if he has cancer.

His son, Antonio M. Angotti, dropped him off at the hospital and was supposed to pick him up that Friday, June 4, but the father never checked into the hospital, said his lawyer, Michael H. Artan of Los Angeles.

“I don’t know where he is,” Artan said. “No one has any idea. He told his son when he was dropped off that he was going to use the time in the hospital to clear his head.”

Angotti knew he was scheduled to appear June 7 for arraignment on the new charges. When he failed to appear, the court gave Artan another week to find him. When Angotti failed to show up again, U.S. District Judge William J. Rea issued the warrant Wednesday.

Angotti was chairman, president and chief executive of Consolidated Savings Bank, a tiny thrift that failed in 1986. Despite its size, Consolidated played a role in major deals, including the operation of Pyrotronics Inc. in Anaheim, then the state’s largest manufacturer of so-called “safe-and-sane” fireworks.

The thrift’s failure also became a top-priority FBI case in large part because sole owner Robert A. Ferrante allegedly dealt with associates of organized crime. Ferrante, a former Newport Beach developer, was acquitted last fall of all charges stemming from the thrift’s failure.

Angotti and Ferrante aide Raymond L. Arthun were convicted of conspiracy and fraud, but their convictions were later thrown out. In March, Arthun pleaded guilty to reduced charges and was sentenced last month to 60 days in jail, to be served on consecutive weekends starting today.

In a retrial, Angotti was found guilty May 11 of falsifying Consolidated loan records to hide proceeds funneled to Pyrotronics. He faces a maximum of 25 years in prison and a fine of $1.25 million at his sentencing, which is scheduled for July 26.

Two weeks after the conviction, a federal grand jury indicted Angotti and his son on charges alleging false statements in documents used to obtain a $480,000 loan from Western Federal Savings & Loan. Antonio Angotti, 35, a New York investment banker, wanted the loan to buy a condominium in a Sausalito building in which his father had an interest.

The elder Angotti had gone into the business of renovating apartment complexes, and prosecutors allege that he had run into financial difficulty on the Sausalito project. The indictment alleges that the loan proceeds were used to pay off part of an existing construction loan and to provide operating expenses.

The younger Angotti pleaded innocent at Wednesday’s arraignment, and Rea set a trial date for Sept. 7. The son faces a maximum sentence, if convicted, of 135 years in prison and $4.5 million in fines. His father faces 165 years in prison and $5.25 million in fines.