LOS ANGELES - A federal appeals court has upheld the savings and loan fraud convictions of financier Charles W. Knapp, in a decision handed down Dec. 11.

The ninth circuit court ruled that the sentence imposed on Mr. Knapp - 6 1/2 years - was too harsh, but left intact a U.S. district court order that Mr. Knapp pay $11 million in restitution. It is believed that Mr. Knapp's sentence will be reduced by a matter of months.

The fine equaled the amount that prosecutors said Western Savings lost on a loan fraudulently obtained by Mr. Knapp. Western, based in Phoenix, failed in 1989.

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