ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, April 4, 1996 TAG: 9604040094
SECTION: NATIONAL/INTERNATIONAL PAGE: A-9 EDITION: METRO
DATELINE: LOS ANGELES
A federal judge overturned the state court conviction of Lincoln Savings & Loan boss Charles H. Keating Jr. on Wednesday, ruling that Judge Lance Ito's jury instructions were flawed.
The decision came from U.S. District Judge John G. Davies, who got the case after state appeals courts had upheld the conviction.
Keating will remain in prison while he appeals his conviction on federal charges.
Davies sided with Keating's lawyers, who said Ito erred in telling jurors Keating could be convicted as a direct perpetrator of fraudulent bond sales to Lincoln investors and botched a specially crafted aiding-and-abetting instruction.
Keating was the most notorious figure of the 1980s S&L debacle, known for political influence that tarred the reputation of the ``Keating Five'' senators and for selling junk bonds, which became worthless, to elderly investors who previously had owned insured CDs.
Keating's conviction on 17 securities fraud counts in December 1991 had been a major victory for the Los Angeles district attorney's office.
LENGTH: Short : 31 linesby CNB