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               Proprietary to the United Press International 1990

                     December 20, 1990, Thursday, BC cycle

SECTION: Regional News

DISTRIBUTION:  Texas 

LENGTH: 278 words

HEADLINE: Two found guilty in  bank  fraud case

DATELINE: SAN ANTONIO

KEYWORD: TX-BANKFRAUD

 BODY:    Two former San Antonio developers were found guilty of federal 
charges accusing them of inflating a multi-million dollar loan to help a 
troubled savings and loan institution fend off federal regulator.

    A federal court jury in San Antonio late Wednesday found  David Saks  
and Doyle Spruill guilty on one count of conspiracy to commit  bank  
fraud and five counts of  bank  fraud.

    Sentencing was scheduled for March 1 for the two men, who have 
remained free on bond since they were indicted and arrested four months 
ago.

    The two were accused of fraudulently negotiating a loan in late 1984 
with Security Savings Association of Texarkana to acquire and develop 336 
acres in Corpus Christi.

    The two allegedly applied to Security Savings for a loan of about $14 
million to fund the project.

    But the indictment alleges the savings and loan executives asked the 
developers instead to apply for a $19 million loan and divert $5 million 
to a silent third partner, Dallas developer Ray Stockman.

    Stockman had an unrelated loan from Security Savings on a faltering 
condominium project in South Dallas that was being scrutinized by Federal 
Home Loan  Bank  Board regulators.

    Stockman then allegedly funneled the $5 million back to Security 
Savings to settle the debt on the condominium project and throw off 
regulatory pressure on the thrift.

    Security Savings closed in June 1987, and its losses were estimated 
at more than $422 million.

    Three others indicted in the case, former Security Savings president 
Ronald C. Hertlein and major owners Clifton Brannon Jr. and Don G. Jones, 
face  bank fraud charges in a separate trial scheduled to begin in 
January.





                                                                       
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