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FOUR KEATING ASSOCIATES CONSENT TO $75 MILLION RESTITUTION, BANNING

FOUR KEATING ASSOCIATES CONSENT TO $75 MILLION RESTITUTION, BANNING
 WASHINGTON, Aug. 25 /PRNewswire/ -- Four former banking associates of Charles Keating, who is presently serving a prison term for a California securities fraud conviction, have agreed to judgments of $75 million in restitution and to being banned from the banking industry, the Office of Thrift Supervision (OTS) announced today.
 The four, who signed consent agreements with OTS, were directors of Keating's American Continental Corporation (ACC), the bankrupt holding company for the failed Lincoln Savings and Loan Association, Irvine, Calif. They are:
 -- Robert M. Wurzelbacher Jr., Keating's son-in-law, and a former director and senior vice president of ACC;
 -- Judy J. Wischer, a former director, president and chief executive officer of ACC, and former president, chief executive officer and chairman of Lincoln;
 -- Robert J. Hubbard Jr., a former director and vice president of ACC and a former director and president of Lincoln, and a Keating son-in-law; and
 -- Andre A. Niebling, former director, senior vice president of ACC and former chairman and chief executive officer of Lincoln.
 OTS had charged them -- along with Keating, his son Charles H. Keating III, and another ACC director, Robert J. Kielty -- of illegal actions that caused Lincoln to incur significant losses. The charges sought $130.5 million in restitution from the seven. Hearings on two of the four charges were held in Phoenix in April 1992, with no defense offered.
 Without admitting the allegations of the OTS, Wurzelbacher, Wischer, Hubbard and Niebling agreed to be banned from the banking industry for life. In addition, each agreed to the entry of judgments for restitution as follows:
 Wurzelbacher, $30 million, of which $133,000 was paid immediately from proceeds of the sale of a vacation home in Leland, Mich.; Wischer, $25 million; Hubbard, $15 million; and Neibling, $5 million. The judgments may be collected from available insurance and future assets. With the exception of Wurzelbacher's $133,000 payment, the monetary aspects of the settlements are identical to those reached by the Resolution Trust Corporation (RTC).
 OTS also obligated the four to submit periodic financial disclosure and imposed limitations on the ability of the four to borrow or engage in similar transactions with federally insured financial institutions for a number of years. The limitations apply to loans to any entity in which any of the four may have an interest of 10 percent or more and limit the amount of personal loans or home mortgages they may obtain from federally insured institutions.
 The borrowing restrictions apply to Wurzelbacher and Wischer for 10 years and to Hubbard and Niebling for seven years.
 Each of the four must cooperate with OTS by testifying at any proceeding related to the charges, consistent with their Fifth Amendment rights against self-incrimination. If, however, they are offered immunity, each must testify at any proceeding on matters for which immunity is granted.
 -0- 8/25/92
 /CONTACT: Thomas P. Mason of the Office of Thrift Supervision, 202-906-6677/ CO: Office of Thrift Supervision ST: District of Columbia IN: FIN SU:


IH -- DC016 -- 3126 08/25/92 15:38 EDT
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Publication:PR Newswire
Date:Aug 25, 1992
Words:510
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