Amadeusz Juskowiak

Three convicted in home state failure

Marvin Warner and two fellow officers of the former Home State Savings Bank were convicted on charges connected with the collapse of Home State

Warner the owner of Home State was found guilty of six counts of performing unauthoriazed acts investing some Home State money without authorization from the board of directors

and three counts of securities violations in the 1985 collapse He was acquitted on 76 counts of willful misapplication

Burton Bongard former Home State president was convicted of all 81 counts willful misapplication David Schiebel also a former president was convicted on three of four counts of securities violations but was acquitted on 84 charges of willful misapplication corrects warners conviction

The irregularities in which the men were charged led to a stateimposed moratorium on all stateinsured savings and loan companies in Ohio which was lifted on an individual basis as the firms were able to show proof of their solvency

Judge Richard Niehaus of Hamilton County Common Pleas Court ordered Warner jailed in lieu of 35 mln dlrs bond He set a 15 mln dlr bond for Bongard and 25000 dlr bond for Schiebel pending the appearance of the trio for sentencing March 30

Lawrence Kane special prosecutor said that Warner and Bongard could receive a maximum of 15 years in prison He said that Schiebel could receive a maximum of 5 to 6 years on his convictions

All three were accused in the draining of 144 mln dlrs of Home State funds through investments with ESM Government Securities Inc of Fort Lauderdale Fla which went bankrupt and triggered the collapse of Home State

On March 5 1985 Ohio Governor Richard Celeste closed all of the states privatelyinsured savings and loan companies and they remained closed until they could obtain federal deposit insurance or merge with other companies which had federal deposit insurance

Reuter