The founder and former chief executive of a failed Connecticut thrift was sentenced to 33 months in prison for bank fraud and misapplication of funds.

Michael G. Morgan, 50, will remain free while he appeals the conviction to the U.S. Court of Appeals for the 2d Circuit. The U.S. Attorney's Office is also considering appealing for a longer sentence.

"We think the law called for a stiffer penalty," said Kari A. Pedersen, assistant U.S. attorney. "We will be reviewing whether or not an appeal is appropriate."

Mr. Morgan was convicted in the failure of Charter Federal Savings and Loan Association, Stamford, which collapsed in 1990, just six years after it was founded.

A jury convicted him of, among other things, inflating the bank's books to show a profit in 1987 and 1988.

Four other people, including the thrift's former chief financial officer, have pleaded guilty to related charges.

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