VAN NUYS : Keating Investors Assured of Support for Claims

Small investors in Charles H. Keating Jr.’s company, meeting with the area’s top federal prosecutor, have been assured that the government would support their claims to any assets forfeited by the convicted savings and loan chief.

“If we do make any recoveries, we will make every effort to distribute a significant portion to the fraud victims,” U.S. Atty. Terree A. Bowers told about 175 Lincoln Savings & Loan bondholders Tuesday in Van Nuys.

The meeting was the first between the Lincoln/ACC Bondholders Action Committee and Bowers, whose office prosecuted Keating on racketeering and fraud charges. The financier was convicted in January and sentenced to 12 years and 7 months in prison.

Despite a record verdict against Keating’s firm 14 months ago, bondholders have since recovered barely half of the $286 million that was lost. The group that met Tuesday represents investors whose losses amount to 69% of the total.