Texas Financier to Settle S&L Case
WASHINGTON (AP) - Texas financier Charles Hurwitz has agreed to pay
$206,000 to settle regulators' charges he violated federal rules
governing thrifts, the Office of Thrift Supervision announced Friday.
The agreement came more than a year after a judge rejected the federal
agency's efforts to force Hurwitz to pay some $820 million in damages for
the 1988 failure of a savings and loan, United Savings Association of
The regulators had alleged that Hurwitz and five other executives of
Houston-based United Savings Association duped them and violated rules
governing thrifts. United Savings was taken over by the government after
But U.S. Administrative Law Judge Arthur Shipe recommended in September
2001 that all charges against Hurwitz and his Houston-based industrial
company, Maxxam Inc., be dismissed and that the federal thrift agency not
receive any monetary damages.
The $206,000 that Hurwitz, Maxxam and another company he controls,
Federated Development Co., agreed to pay is in the form of restitution to
the government, not damages. Hurwitz and the two companies also agreed to
restrictions on any future activities with a federally insured depository
Hurwitz and Maxxam ^T which owns Kaiser Aluminum Corp. and Pacific
Lumber Co. ^T have spent 10 years and an estimated $30 million battling
Hurwitz has long said that the case, in which formal hearings did not
begin until nine years after United Savings' collapse, was a politically
motivated effort to force him to relinquish control of ancient redwoods
in the Headwaters Forest in California.
The federal and California governments paid $450 million to acquire 9,500
acres of the Headwaters Forest from Pacific Lumber in 1999.