BANKING & FINANCE - Feb. 25, 1995

Keating Relative to Serve Full Sentence: A federal judge rejected a request to reduce the prison time for one of convicted swindler Charles H. Keating Jr.’s sons-in-law, who pleaded guilty in the Lincoln S&L; scandal, court documents show. U.S. District Judge Mariana Pfaelzer denied the motion to halve the 40-month prison term she ordered for Robert Wurzelbacher Jr., a former director of the Irvine thrift’s parent firm. Pfaelzer, who sentenced Wurzelbacher Dec. 7, 1993, issued her ruling Tuesday. It is the second time in eight months the judge has turned down his request to pare his sentence. Wurzelbacher admitted misapplying about $13 million in federally insured funds to the owners of Hotel Pontchartrain in Detroit.