The Office of Thrift Supervision has fined and banned from banking a group of investors led by a retired university professor.

The agency had charged Prem Sahai and 11 relatives and acquaintances with owning more than 25% of the stock of Mid-Iowa Savings Bank, Newton, within three years after the thrift's October 1992 mutual-to-stock conversion. OTS rules ban individuals or groups from acquiring 10% or more of a converted thrift's stock in such a period.

The group did not admit or deny wrongdoing, according to an April 23 OTS order. However, they are required to repay $221,000 in illegal profits, along with a civil money penalty of $175,000.

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