LOS ANGELES - Edward M. Israel, former chairman and chief executive officer of the defunct Westwood Savings & Loan Association in Los Angeles, was sentenced in federal court to 18 months in prison for his role in defrauding Westwood and another thrift.
Mr. Israel, 40, pleaded guilty last July to three counts of savings and loan fraud. Westwood Savings and the other Los Angeles thrift, Brookside Savings & Loan, were taken over by federal regulators in the late 1980s.
Mr. Israel and Michael S. Moers, former chairman and co-owner of Brookside, sold their interests in a piece of Los Angeles real estate to their respective S&Ls, while concealing their ownership.
Mr. Moers is already serving an 18-month sentence for his involvement.
$6 Million in Restitution
Mr. Israel, who has cooperated with federal prosecutors and attorneys representing federal regulators, agreed to settle his criminal and civil restitution liability for $6 million.
He has already paid $1 million and has three years to pay the rest.
His sentence includes five years of probation. If Mr. Israel fails to make the restitution payments his prison term could be extended, said Steven Zipperstein, assistant U.S. attorney.
Mr. Israel's attorney, Charles English, said his client acknowledged his crimes and is being punished.
But the attorney stressed that the crimes caused only a small financial loss and did not trigger the thrift's collapse.