Couple Pays $8.5 Million to Settle Failed S&L Case
HUNTINGTON BEACH, Calif. (AP) _ The former head of Guardian Savings and Loan and his wife agreed to pay $8.5 million to settle charges of causing huge losses and using the thrift as a piggybank for personal loans and travel.
Russell Jedinak, the former owner, chairman and president of Guardian, and his wife Rebecca, an executive and director, admitted no guilt when settling the Office of Thrift Supervision charges, the OTS said Monday.
The Jenidaks agreed, however, never to work again at any federally insured banking institution.
They quit their jobs under pressure in January 1991. Guardian, with assets of $682 million, was seized that June. It wound up a case for the Resolution Trust Corp., the agency set up to liquidate the assets of failed S&Ls.
The regulatory charges alleged the Jedinaks accepted credit from Guardian at no interest or artificially low rates and that Guardian paid for trips and maintenance of property without business purposes.
In addition, the Jedinaks allowed several large and money-losing real estate loans to be issued without the proper checks, including some that benefited them personally. Other charges involved alleged improprieties in loan loss reserves, dividends and financial statements.
The OTS said the $8.5 million was paid to the RTC as receiver for Guardian.