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OTS SEEKS RESTITUTION, PROHIBITION OF EX-CHAIRMAN OF NEW MEXICO THRIFT

 WASHINGTON, May 12 /PRNewswire/ -- The Office of Thrift Supervision (OTS) has charged Robert R. Burger, former chairman of First Federal Savings and Loan Association, a New Mexico thrift in Las Vegas near Santa Fe, with multiple violations of the regulation on limitations of loans to one borrower and seeks his prohibition from banking and restitution of at least $2.4 million dollars.
 The restitution represents outstanding principal and interest on nine loans OTS said Burger made in violation of the regulation and now in default.
 OTS said that as of March 1987, First Federal had loans outstanding to one borrower, Michael Gregory, First Federal's attorney, the total of which exceeded the legal limit by at least $300,000. In July 1987, Burger, who was also president, chief executive officer and a member of the loan committee, and the other directors, signed a response to an OTS examination acknowledging previous violations of the loans to one borrower regulation and their intention to adopt a new policy to avoid future violations.
 Altogether, from March 1987 until May 1989, First Federal made 18 additional loans to Gregory and his interests with Burger's knowledge and approval, charges OTS. Each was a violation of regulation. There was a total of 21 loans to Gregory and his interests, with principal of $3.4 million, exceeding the legal limit by $1.3 million plus unpaid interest.
 Two other former directors, Robert Henry and Raymond Castellini, without admitting or denying guilt, have signed consent orders prohibiting them from the banking industry, after OTS accused them of ratifying the loans to Gregory in violation of the limitation regulation and for failing to take action to stop the repeated violations.
 First Federal was a federally chartered stock association, with assets of $54.3 million and liabilities of $55.5 million as of Aug. 31, 1990. OTS placed the institution into receivership with the Resolution Trust Corporation Nov. 16, 1990.
 -0- 5/12/93
 /CONTACT: Thomas P. Mason of the Office of Thrift Supervision, 202-906-6688/


CO: Office of Thrift Supervision; First Federal Savings and Loan
 Association ST: New Mexico IN: FIN SU:


MH-KD -- DC018 -- 7619 05/12/93 13:12 EDT
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Publication:PR Newswire
Date:May 12, 1993
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