Four Old Court Executives Fired by Conservator
ANNAPOLIS, Md. (AP) _ Four executives at Old Court Savings and Loan, including three named as defendants in a multimillion-dollar civil suit filed by the state, have been fired by the conservator for the troubled thrift.
The four were replaced last week by Frederick Dewberry, acting director of the Maryland Deposit Insurance Fund Corp. (MDIF). Norm Silverstein, a MDIF spokesman, confirmed the firings on Tuesday.
The four executives are Dennis Guidice and Thomas Jefferson, Old Court vice presidents; Allen Feinberg, a director of the S&L; and James Gay, director of an Old Court subsidiary.
Old Court has been in the hands of a conservator since the public disclosure of management problems in May touched off a run by depositors that threatened to bankrupt the state’s second largest privately insured thrift. The run quickly spread to other S&Ls, and on May 14, Gov. Harry Hughes imposed withdrawal limits on 102 institutions around the state.
Restrictions have since been lifted at 76 S&Ls.
The civil suit filed last week seeks $200 million in punitive damages plus an unspecified amount in compensatory damages from 12 individual defendants and 14 businesses associated with Old Court.
It alleges that the defendants, including owners, officers and directors of Old Court and their business associates, accepted millions of dollars in fees for services not performed, misappropriated large amounts of money and transferred business from Old Court to other firms.