LOS ANGELES : Ex-Sen. Robbins Ordered to Pay $3 Million to FDIC
A federal judge ordered former state Sen. Alan Robbins on Monday to pay more than $3 million in restitution to the Federal Deposit Insurance Corp. but spared him additional prison time for illegally obtaining bank loans.
Robbins, who has just completed a prison sentence on political corruption charges, told reporters later that he was relieved that “the ordeal of my incarceration is over.” He said he is fully committed to making restitution.
The former multimillionaire said he could not say when he will be able to make the payments because much of his net worth is tangled up in lawsuits with former business partners.
The hearing before U.S. District Judge Robert M. Takasugi stemmed from Robbins’ 1992 guilty plea to three counts of failing to fully reveal in writing his financial situation when applying for loans from Independence Bank of Encino.
Robbins, 50, had $3.38 million in loans outstanding from the bank when it was taken over by federal regulators. The FDIC is the conservator of the bank’s assets.
Takasugi could have sentenced Robbins to a maximum of six years and a $750,000 fine. Bowing to the recommendations of federal prosecutors, Takasugi imposed a prison term that ran concurrently with his recently completed time at a federal prison camp at Lompoc in Santa Barbara County.
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