Former Execs of Midwest Federal Are Convicted of Racketeering
ST. PAUL -- Four former executives of Midwest Federal Savings and Loan Association were convicted Thursday on charges stemming from its collapse in 1989, which is expected to cost taxpayers $1.2 billion.
Each of the four was acquitted on some counts, but all were convicted of the most serious charge - racketeering. Among them was former chairman Harold Greenwood Jr., his daughter Susan Greenwood Olson, and a former Minnesota banking regulator.
Guilty of 25 Counts
Mr. Greenwood was found guilty of 25 of the 27 charges against him. The convictions included conspiracy, several securities fraud counts, misapplication of funds, filing false reports to regulators, and racketeering.
Susan Olson, a former vice president at the thrift, was convicted on 11 of 12 counts. Robert A. Mampel, a former Midwest Federal senior vice president and Minnesota banking commissioner, was convicted on 14 of 15 counts.
Charlotte Masica, a former managing officer, was convicted on 13 of 21 charges.
Prosecutors said the defendants conspired to conceal the thrift's financial woes from regulators and investors while paying themselves handsomely.
The racketeering conviction carries a sentence of up to 20 years, while most of the other counts have five-year maximums, said defense attorney Doug Thomson. No sentencing date was set.