ST. PAUL, Minn. -- A federal jury Thursday convicted former Midwest Federal Savings and Loan president Hal Greenwood Jr. of 27 felony counts arising from criminal mismanagement of the failed thrift.
Three co-defendents, including Greenwood's daughter, his executive assistant and the thrift's vice president, were found guilty on charges ranging from bank fraud and racketeering to conspiracy, misappropriation of funds and insider trading.
Prosecutors portrayed Greenwood and the three others as looters who awarded themselves large bonuses and benefits while hiding the bank's deteriorating condition from federal regulators and customers.
The jury deliberated 25 days following a five-month trial, the longest seen in a federal case of this type in Minyesota.
Greenwood was found guilty of 27 of 29 counts; daughter Susan Greenwood-Olson, guilty on nine of 10 counts; and vice president Robert Mampel, guilty on 14 of 15 counts. Executive Charlotte Masica also was convicted of most of the counts against her.
'I'm very disappointed. I've had a lot of times where I've had victories, some defeats. That's all I can say right now,' Greenwood said as he left the courthouse.
U.S. District Judge Paul Magnuson raised Greenwood's bail to $250,000 from $50,000, and set sentencing in six to eight weeks.
Prosecutors called 29 witnesses over 59 days. The counts alleged the four defrauded investors who bought about $22.5 million in Midwest securities shortly before its $1.2 billion collapse.
Federal authorities seized Midwest in February 1989. Greenwood and the three co-defendents were formally charged in June 1990.
The most damaging testimony came from Ivan Fercho and Don Snede, two other former Midwest executives, who detailed how Greenwood ordered them to cover up the thrift's spiraling losses.
Snede testified Greenwood knew Midwest was losing millions, largely resulting from the failing finances of a Midwest subsidiary, Green Tree Acceptance Corp. Snede, who pleaded guilty to felony fraud charges last year, also said Greenwood ordered him to file false profit statements and doctor other financial records.
Fercho testified Greenwood ordered him to forge loan records during a management meeting in 1987. Two other former Midwest executives attending the meeting, however, later testified that they could not recall Greenwood making any such statement.
Defense attorneys argued over six days the four were victims of their own poor judgment who merely were trying to save the floundering savings and loan.
None of the defendants testified and lawyers for Greenwood-Olson, Masica and Mampel did not call any witnesses.