Flamboyant Miami banker Abel Holtz is facing a prison sentence and $250,000 fine after pleading guilty this week to charges that he tied to a grand jury investigating the former mayor of Miami Beach.
The 61-year-old Mr. Holtz. who resigned two weeks ago as chairman of Capital Bancorp, pied guilty on Tuesday to one count of obstruction of justice and could face anywhere from 6 to 12 months behind bars, said Wilfredo Fernandez, special counsel to the U.S. Attorney in Miami.
Mr. Holtz could not be reached for comment.
Mr. Fernandez said Mr. Holtz surrendered his passport and was released on bond. A sentencing hearing is scheduled for Jan. 20.
The charges stemfrom,Mr. Holtz's appearance before a grand jury that was investigating former Miami Beach Mayor Alex Doud in the early 19908. Mr. Doud, who at one time served as an attorney for the $13-billion-asset Capital Bank, was indicted on corruption charges and is now serving a five-year prison sentence.
Mr. Holtz's guilty plea is a dramatic turn of events for the banker who for years has been a prominent businessman in Miami. He immigrated to the United States from Cubain 1961 and founded Capital Bank 13 years later. He became so well known in Miami that there's even a street named after him.
But over the years Mr. Holtz has been dogged by problems. Two years ago he was accused by some of the bank's directors of misusing $355,000 in bank funds to settle complaints of sexual harassment from two women. But state regulators dropped the investigation. "Around the same time, four bank directors tried to oust Mr. Holtz, but he gained the upper hand and replaced them. In June 1993, Capital Bank of California, controlled by Mr. Holtz, failed. Two weeks ago Mr. Holtz suddenly resigned as chairman saying the bank had become "overly identified" with him. His son Daniel Holtz, who has worked as an executive at the bank, took over as chairman. A Miami banker said he wasn't surprised to hear of Mr. Holtz's plea.
"I think a lot of bankers in Dade County have resented Mr. Holtz because he has given bankers a bad name by his very own actions," he said.
