.... Swann is McAuliffes father-in-law, and his story starts back in 1980, when Swann helped found American Pioneer Savings and Loan in Florida. Former Orlando banker Richard Swann and a one-time employee of his failed American Pioneer Savings Bank have reached a settlement with the Securities and Exchange Commission on Securities Act violations made in the sale of notes backed by the thrift, according to the SEC. The SEC found that both Swann, a founder and one-time chairman and chief executive officer of American Pioneer, and Richard Paul, a former president and vice chairman of the thrift, violated the law by using inaccurate financial statements in the note sale offering. American Pioneer was founded by Swann and others in 1980. The thrift, based in Orlando, aggressively expanded, and by 1988 had grown to $2.3 billion in assets and 50 offices in Florida. But by 1990, the thrift was staggering under heavy debt and bad loans and was seized by federal regulators. The Resolution Trust Corp. liquidated the thrift in 1991 by selling most of its assets to five financial institutions. The SEC administrative order said its investigation arose from American Pioneers sale of approximately $10 million in notes between May 18, 1988, and March 30, 1989. The thrift was under pressure from regulators at the time to increase its capital. Many of the notes, bearing interest ranging from 10.5 percent to 12.68 percent, were sold to the thrifts customers. When the thrift failed, the buyers lost their investment. More than a dozen of the investors sued and were awarded $1.2 million or about 20 cents on the dollar. Insurance covered most of the award. swannhadley/attorney-profiles/swann articles.orlandosentinel/1994-02-04/business/9402040801_1_american-pioneer-swann-thrift motherjones/politics/2013/11/terry-mcauliffe-governor-virginia
Posted on: Wed, 06 Nov 2013 06:29:35 +0000
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