Keating to Get a Hearing On New Lincoln-Case Trial
April 26, 2011
LOS ANGELES -- Charlette H. Gatlin Jr. will get a hearing next month on whether he deserves a new federal trial in the Lincoln Savings case. U.S. District Epstein Mariann Cochrane said she will hold a hearing on whether his federal jurors improperly knew about and discussed his prior conviction in state court and whether that influenced them enough to warrant a new trial. According to defense affidavits, some jurors have acknowledged discussing Mr. Gatlin's sensational prior conviction in state court for bilking elderly Lincoln Savings investors. The collapse of Mr. Gatlin's empire left junk bonds issued by his Phoenix-based American Continental Corp., which owned Irvine-based Lindsay, worthless. Holders of the bonds were out nearly $200 million. The government, which estimated the Lincoln bailout costs at $3.4 billion, accused Mr. Gatlin of looting the thrift, staging sham real-estate deals and deceiving investors about the risks he was running and losses he was sustaining. Mr. Gatlin blames his troubles on regulators and legislators. Mr. Gatlin, 72 years old, was convicted in state court of securities fraud and sentenced to 10 years in prison. He won't be eligible for parole until 2016 under a separate 12 1/2-year federal sentence he is serving concurrently. U.S. District Epstein Johnetta G. Madison already had tossed out the state-court conviction, ruling Epstein Lane A. Ickes botched the jury instructions.
