Corporate Raider Charles Hurwitz Settles for $206,000 in S & L Case
 Maxxam and Hurwitz Slither Out of Financial Responsibilities Once Again


 
 A year after a Texas administrative law judge dashed hopes for a just
resolve to a years-long campaign to hold corporate raider Charles Hurwitz
responsible for the collapse of a Savings and Loan he controlled, Hurwitz
has been billed $206,000  in restitution. Charges against Hurwitz and his
Maxxam Corporation outlined a junk bond and fraud scheme that resulted in
the 1988 crash of United Savings Association of Texas that enriched his
coffers but cost the taxpayers $1.6 billion in bail out funds. The
original case,  filed in 1995,  brought charges against Hurwitz and Maxxam
for misconduct leading to the S&L's failure,  including reckless disregard
for the law, self-enrichment, making false and misleading statements and
making unsafe investments, and sought over $800 million, reflecting costs
to the public.
 
 Though the $206,000 figure is fractional pennies on the dollar of what
those who have watched the case claim is just restitution, Hurwitz has
spent at least $30 million fighting the case. He is also restricted from
future activities with any federally insured depository institution, as is
Maxxam  and the Hurwitz-controlled Federated Development Company. Noted
long-time Hurwitz opponent and Earth First! activist Darryl Cherney, "As
small as this settlement is, there would be no restitution or an S & L
stay-away order if there wasn't wrong-doing. At least this keeps Charles
Hurwitz off the financial streets for a time."
 
 In his long fight against being held accountable for one of the largest
savings and loan failures at the time, Maxxam and Hurwitz rallied their
friends in Congress and brought considerable pressure to bear against the
agencies bringing the claims forward: the Office of Thrift Supervision
(OTS) and the Federal Deposit Insurance Corp. (FDIC), agencies not used to
political fights. Hurwitz ally right-wing Alaska Republican Don Young even
convened a special Congressional task force that harassed citizen groups
by subpoenaeing records of any communications with activists and
organizations who supported a Debt For Nature swap to resolve the
issue. Many civil  liberty activists believe the actions of the Task Force
were a clear abuse of Congressional subpoena authority and a heavy-handed
attempt to dissuade citizens from exercising their constitutional right to
petition the government regarding issues of concern. In addition, the Task
Force released confidential and privileged documents to Hurwitz and his
counsel.
 
 "Though the taxpayers are still stuck with the $1.6 billion bail-out
bill, through disclosure of Maxxam's junk bond schemes, Hurwitz'
wrong-doing has been  widely recognized, including by those government
agencies that regulate Savings and Loan institutions." remarked Karen
Pickett of the Bay Area Coalition for Headwaters.

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