WASHINGTON - Richard C. Strauss and nine other former officers and directors of the failed Gibraltar Savings of Houston and First Texas Savings of Dallas consented on Tuesday to pay the government $7.97 million in restitution.
Mr. Strauss, who will pay $4.5 million over four years, was a shareholder and director of First Texas Financial Corp., the two thrifts' parent. He is the son of Robert Strauss, the prominent Washington Democrat.
Former Chairman Fined $2.4 Million
J. Livingston Kosberg, who was chairman of First Texas Financial, consented to pay $2.4 million over five years.
The Office of Thrift Supervision and the Federal Deposit Insurance Corp. had accused the former thrift officials of unjust enrichment, conflict of interest, breach of fiduciary duty, and unsafe and unsound practices.
None of the accused admitted or denied wrongdoing.
Also settling the charges were Mark Brookner, former chief financial officer of First Texas Financial; E. Michael Lallinger, former co-chairman and chief executive of Gibraltar; J. Michael Cornwall, former president of First Texas; and Clarence Mayer, William M. Siegel, R. Alan Rudy, James D. McNicholas, and Louie Welch.