The Jury Convicts Charles Keating
A jury in California state court in Los Angeles on Dec. 4 found Phoenix financier Charles Keating guilty on 17 of 18 counts of securities fraud. He was charged with defrauding buyers of bonds issued by his company, American Continental, the ownerof Lincoln Savings & Loan. The jury deliberated for 10 days after two months of testimony. At the trial, elderly witnesses claimed that Lincoln employees tricked them into moving their money from insured CDs into risky junk bonds. Keating faces up to 10 years in prison and $250,000 in fines. He also must contend with many civil claims and an expected federal indictment.