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KEATING’S KIN WILL BE DROPPED FROM S&L LAWSUIT

SHARE KEATING’S KIN WILL BE DROPPED FROM S&L LAWSUIT

Federal officials are expected to drop William J. Keating as a defendant in a $1.1 billion civil lawsuit stemming from the failure of a savings and loan run by his brother, Charles, The Detroit News reported this week.

William Keating, 62, president and chief executive officer of the Detroit Newspaper Agency, which oversees the joint business operations of The Detroit News and Detroit Free Press, has demonstrated to federal lawyers that he served more briefly than public records stated as a director of the parent company of the failed thrift, the paper said.The lawsuit filed in Phoenix by the Resolution Trust Corp., the federal agency responsible for cleaning up the thrift industry, accuses Charles Keating and other senior company officers of devising a scheme to loot money from Lincoln Savings and Loan of Irvine, Calif.

Charles Keating, his son and five other top company executives are accused under civil fraud and racketeering statutes.

William Keating is not accused of fraud and racketeering but is named in three of 15 counts and is accused of negligence and breach of fiduciary duty.

William Keating, a former congressman, has said he served on the board of directors of American Continental Corp. of Phoenix from February to August 1986. The newspaper reported that he had said he left the board because he didn't have time to travel from his home in Cincinnati to board meetings in Phoenix.