Keating Ordered by Regulators to Pay $36 Million in Restitution
Regulators Tuesday banned jailed financier Charles H. Keating Jr. from working for a bank or savings and loan and ordered him to pay $36 million in restitution for the failure of his Lincoln Savings & Loan Assn.
The action, taken by Jonathan Fiechter, acting director of the Office of Thrift Supervision, caps an administrative procedure that began in August, 1990.
Keating had sought a new hearing, saying he would be willing to testify, reversing his position at the original hearing where he invoked his constitutional privilege not to testify.
His request was denied.
Keating’s Irvine-based Lincoln Savings collapsed in April, 1989, costing taxpayers an estimated $2.6 billion, the most expensive thrift failure ever.
He was convicted under California law in 1991 of 17 counts of securities fraud and is serving a 10-year prison term. He is scheduled to serve a federal sentence of 12 years and seven months after his state term is completed.
His son Charles H. Keating III and at least eight other associates have also been convicted or entered guilty pleas in the case.
The thrift office acknowledged that Keating may be unable to fully repay the $36 million in restitution, but said it will serve as a claim on his assets.
