PRI19980115.2000.0186
NEWS STORY
Former savings and loan chief, Charles Keating, is facing more legal
troubles in California.
A federal appeals court has reinstated his state convictions
for securities fraud.
NPR's Elaine Corey has more from San Francisco.
In nineteen ninety-one Charles Keating was convicted in state court of
helping to defraud thousands of investors who bought high risk
junk bonds sold by Keating's employees at Lincoln savings and
loan.
The bonds became worthless when the bankrupt thrift was seized
by government regulators.
Keating's convictions were thrown out in nineteen ninety-six on a
technicality.
And on that basis Keating was released from prison before he
was eligible for parole.
Now the ninth US circuit court of appeals has ruled that
the original appeal was flawed since it brought up issues that
had not been raised before.
That means the convictions stand, a ruling likely to send
Keating's lawyers back to state court where they must start over with a new appeal.
Elaine Corey, NPR news, San Francisco.