WASHINGTON -- In the largest recovery ever from uninsured former bankers, two top officials at San Jacinto Savings Association of Bellaire, Texas, will pay the government $20 million to settle a lawsuit, two federal banking agencies announced Friday.
Gene E. Phillips, former chairman of the thrift's holding company, and William S. Friedman, the former vice chairman, will make installment payments over the next 10 years. Mr. Phillips and Mr. Friedman also agreed to be banned from the banking industry.
The Office of Thrift Supervision and the Resolution Trust Corp. accused the two of creating an elaborate scheme that allowed them to profit while the thrift incurred significant liabilities.
The $3.25 billion-asset San Jacinto failed in November 1990, costing taxpayers $1.4 billion. This is not the first time the government has sued Mr. Phillips. The RTC also named him in its suit against Lincoln Savings & Loan of Irvine, Calif.