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PROSECUTORS SAY KEATING’S LACK OF REMORSE MERITS 30-YEAR TERM

SHARE PROSECUTORS SAY KEATING’S LACK OF REMORSE MERITS 30-YEAR TERM

Government prosecutors, declaring that ex-financier Charles Keating Jr. "has shown utterly no remorse" for defrauding thousands of investors, urged that he be imprisoned for 25 to 30 years when he is sentenced Thursday.

Keating, 69, is scheduled to appear in federal court in Los Angeles before U.S. District Judge Mariana R. Pfaelzer.The government's recommendation, in a sentencing memo filed with the court, also called for "restitution in an amount commensurate with the loss" in the massive fraud.

The fraud schemes for which Keating was convicted, the memo said, "were extraordinary in impact, defrauding thousands of victims of millions of dollars and contributing to a thrift failure costing the American taxpayers an estimated $2.5 billion."

Keating faces a maximum sentence of 525 years and a fine of at least $18.7 million.

Keating and his son, Charles Keating III, 37, were convicted in January on 73 and 65 counts, respectively, of fraud, conspiracy and racketeering.

The convictions stemmed from the fall of Phoenix-based American Continental Corp. and its thrift, Lincoln Savings and Loan, based in Irvine, Calif. The collapse caused the costliest savings and loan bailout in U.S. history.

Keating's son is scheduled to be sentenced July 23.

The Keatings also were convicted of defrauding 17,000 small investors who lost money on bonds issued by American Continental Corp.

The government's sentencing recommendation for Keating was made by Assistant U.S. Attorneys Alice C. Hill, David A. Sklansky and Matthew W. Frank.

Keating, an Arizona home builder and developer, already has been sentenced to 10 years in prison in a separate fraud case brought by state prosecutors in California. He has been held in Tucson, Ariz., pending his sentencing in federal court.

In requesting a stiff sentence, government prosecutors declared in their memo to the court that Keating "has shown utterly no remorse for his conduct, nor did he show any reluctance to perjure himself repeatedly at trial."

Keating's victims, the prosecutors said, were the individuals who purchased worthless American Continental Corp. bonds. Some of them "suffered extreme psychological harm as a result of his criminal activity," they said.