Keating, 4 Others Indicted in Federal Court
LOS ANGELES -- Charles H. Keating Jr., former owner of Lincoln Savings and Loan Association, and four others were charged in a 77-count federal indictment with racketeering, conspiracy, bank fraud, securities fraud, misapplications of funds, and interstate transportation of stolen property.
Mr. Keating, 68, surrendered Thursday to federal authorities.
The indictment said the racketeering activity included a scheme to create sham profits for Lincoln and its parent, American Continental Corp., through allegedly fraudulent sales of undeveloped land and other assets.
Keating's Son Charged
The other defendants, all former Lincoln officials, are Judy J. Wischer; Charles H. Keating 3d, Mr. Keating's son; Robert M. Wurzelbacher; and Andrew F. Liggett.
If convicted on all charges, prosecutors said, Mr. Keating and Ms. Wischer each faces a maximum sentence of 510 years in prison, $17 million in fines, and forfeiture of $265 million in assets. The others would face slightly less severe penalties.
After a state-court trial, Mr. Keating faces up to 10 years in prison on a conviction for selling American Continental bonds in Lincoln branches.