Printer Friendly

$16 MILLION IN RECOVERY SOUGHT FROM FORMER SECURITY SAVINGS OFFICIALS

$16 MILLION IN RECOVERY SOUGHT FROM FORMER SECURITY SAVINGS OFFICIALS
 WASHINGTON, June 24 /PRNewswire/ -- Citing acts of fraud, hiding insider loans and other misconduct, the Office of Thrift Supervision (OTS) has initiated enforcement action against seven former officials and advisers of Security Savings and Loan Association, Waterbury, Conn., and is seeking monetary amends of $16 million.
 The seven former officials of Security, which failed in 1991 and is now operating in receivership under the Resolution Trust Corp., are:
 -- Richard Barbieri Sr., former president and director.
 -- John Corpaci, former executive vice president.
 -- Vinal Duncan, former vice chairman.
 -- Anthony DiFabio, former counsel.
 -- Mario Albini, former chairman.
 -- Richard Barbieri Jr. (son of the Barbieri Sr.), former vice president.
 -- Paul Kolok, a consultant who operated as an officer and as a business associate of Barbieri Sr.
 OTS wants $9 million in restitution, including related unjust enrichment and $7 million in civil money penalties. The regulator also seeks to ban all of them from the banking industry and to debar DiFabio, an attorney, from practice before OTS.
 Citing the substantial record of "deception, improper self- dealing, personal dishonesty" and other "willful and reckless conduct" in the case, OTS issued an asset preservation order that took effect immediately. It requires the respondents to post security totaling the amount of restitution sought. The security must be in the form of cash, escrow account or an irrevocable letter of credit or fidelity bond, or by providing other security deemed adequate by the director of OTS.
 One of the 14 charges involves more than $1.2 million in unsecured loans granted between 1988 and 1990 that benefited Victoria Court, Inc., a 110-unit condominium in which Security officers and directors had a 50 percent interest. OTS said 12 directors and officers took $600,000 in loans and that an additional $600,000 was loaned to Victoria Court's president to finance Victoria Court.
 The regulator charged that Security's loans protected a $1 million gain for Barbieri Sr., Corpaci, Duncan and Barbieri Jr., that resulted from their sale of land to Victoria Court in 1987. In addition, a significant amount of money was obtained from Security when Victoria court was in desperate financial straits. Barbieri Sr., Corpaci and Duncan were being pressed by Victoria Court creditors as a result of their personal guarantees on Victoria Court loans at other banks and the Security loans they caused to be made to Victoria Court shareholders took the financial pressure off them.
 Security has lost more than $400,000 on the loans, and OTS is seeking restitution in that amount, as well as disgorgement of the $1 million gain, and civil money penalties of $150,000 each against Barbieri Sr., Carpaci and Duncan, and $75,000 from Barbieri Jr.
 In another count, OTS also charges that in October 1986, Barbieri Sr., Corpaci and Duncan, through their real estate investment company, The Taft Group, sold property to a real estate developer for $2.3 million. The Taft Group had purchased the property only a few weeks earlier for $1.1 million from a business associate of Barbieri's, who himself had bought the property at the end of January 1986 for $300,000.
 Initial financing for the developer's purchase from The Taft Group came from another institution. However, beginning in January 1987 and continuing until early 1989, Barbieri Sr., Corpaci and Duncan arranged for Security to lend more than $10 million to the project, named Lakewood. The loans refinanced the original purchase price and provided funds for construction on the project.
 Barbieri Sr., Corpaci and Duncan never advised the board of directors of Security of their deal with the developer or of the purchase history of the property. The loans to Lakewood, which were initially secured by the property, were in violation of the regulations prohibiting loans to affiliated persons.
 On this charge, OTS seeks restitution and reimbursement of $400,000 from Barbieri Sr., Corpaci and Duncan jointly and severally, and assessed civil money penalties of $200,000 each against the three.
 All seven respondents have 20 days to reply to the charges.
 -0- 6/24/92
 /CONTACT: Thomas P. Mason of the Office of Thrift Supervision, 202-906-6677/ CO: Office of Thrift Supervision; Security Savings and Loan
 Association ST: Connecticut IN: FIN SU:


DC -- DC018 -- 3342 06/24/92 13:59 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 24, 1992
Words:715
Previous Article:NISSAN REPORTS SALES FOR JUNE 1992
Next Article:DU PONT MERCK NAMES FLETCHER AS GOVERNMENT AFFAIRS MANAGER
Topics:


Related Articles
Are they covered?
FORMER CONNECTICUT THRIFT OFFICERS CONSENT TO $5 MILLION RESTITUTION AND PROHIBITION
LOTTO PRIZE PLAN CHALLENGED; CARDENAS CALLS IDEA BAD FOR SCHOOLS.
PITCHESS' SOUTH UNIT TO REOPEN.
Schatz & Nobel, P.C. Announces Class Action Lawsuit Against Gander Mountain Company.
Crawford & Company's Dedicated Recovery Unit Recoups $16 Million in Subrogation for Clients.
BRIEFLY.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters