- 13 -
3. The FSLIC's Seizure of Petitioner's Assets
On June 29, 1987, the FSLIC obtained a preliminary
injunction against seven Vernon directors, including petitioner.
The injunction sequestered the directors' assets. The injunction
allowed petitioner to spend $2,000 each month. That amount was
increased a few days later to $3,500. Because of the injunction,
petitioner could no longer make payments on the $106,795 note to
Lemons. The injunction made petitioner insolvent. The
injunction was still in effect at the time of the trial of this
case.
4. The Closing of Texana
On August 19, 1988, the FHLBB put Texana in receivership and
appointed the FSLIC as receiver to liquidate Texana.
H. Criminal Prosecution and Conviction of Some Vernon Officers
and Directors
Some Vernon officers and directors (not including
petitioner) were convicted of crimes relating to their activities
at Vernon or its subsidiaries. On September 8, 1988, Roy Dickey,
a former Vernon president, was convicted of falsifying a
delinquent loan list submitted to the FSLIC. On August 29, 1989,
James R. Veteto, the former president of Vernon Service Corp.,
was convicted of falsifying Vernon loans. On October 5, 1989,
Pat L. Malone, a Vernon executive vice president, was convicted
of misapplying Vernon funds, using false documents to conceal the
misapplication of funds, and using the misapplied funds to make
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011