European Stars and Stripes (Newspaper) - February 04, 1990, Darmstadt, Hesse                                Sunday. February 4. 1990 the stars and stripes Page 5 banking regulators seize Florida s biggest so Washington a Federal regulators on Friday seized Florida s largest savings and loan association. Entrust Bank blaming its failure on junk Bond investing and on lavish spending on an. A company yacht and High salaries. The seizure Long expected by Bankers and Industry analysts Caps a lengthy Effort by regulators to rein in the High Fly ing institution which had invested $1 billion in junk Bonds the Treasury department s office of Thrift supervision declared that the Miami based savings and loan was operating in an unsafe and unsound Condi Tion and turned it Over to Resolution Trust corp. For Sale or liquidation. Etc is a quasi governmental Agency set up to handle the mechanics of Man aging and Selling Thrift institutions that the government has Sci cd. With $8.2 billion in assets. Entrust is Florida s largest and the nation s 23rd largest savings institution. Can Trust s offices will remain open for business with deposits guaranteed to $100.000 per account. The institution had $6.2 billion in 325.813 accounts. The Thrift office in announcing the takeover said that As of sept. 30 Cen Trust had accumulated losses of $245 million. The Agency said another $43 million had been lost in the fourth Quarter and that the Thrift continued to deteriorate. Industry analysts said however that the Thrift posted a loss of More than $100 million in the fourth Quarter. The Agency also cited substantial dissipation of assets and earnings due to violations that include excessive and in appropriate expenses and  it said the Thrift s securities portfolio composed largely of High yielding High risk junk Bonds was experiencing Large and mounting  entrust is not just another failed  said Miami Thrift analyst Ken Neth Thomas. This is the first time that a Bank failed just because of junk Bonds. This is  in december after completing its examination of entrust s books the Thrift office issued a Casc and desist order instructing the so. To sell what was left of its $30 million Art collection much of it displayed in entrust chairman David Paul s Home As Well As limousines a corporate Jet and a $233.000 company sail boat. Entrust also spent hundreds of thou Sands of dollars on sculptures Oriental rugs Crystal stemware Mercedes Ben and Lincoln limousines and luxury hotel accommodations for Paul in new York. It paid the salaries of the Crew and other expenses for Paul s yacht. Grand  regulators charged. It also spent $308.000 on guard serv ices for Paul s Home where the paintings were Hung. Florida officials on dec. 20 filed an order seeking to oust Paul who collected a $4.8 million salary and other compensation from january 1988 to september 1989. In Friday s seizure. Paul and several other senior cent Rusl officials were re placed by new managers. Last week the Thrift office halted Trad ing in entrust s Stock charging that the Thrift had manipulated its financial re ports to conceal its precarious finances. In particular regulators said cent Rusl had Mista cd the condition of its portfolio of junk Bonds High yield securities often used to underwrite risky mergers and takeovers. They had launched an examination of can Trust s books in May. Hut complained that the institution was blocking Access to some of its records. Also on Friday the government seized four other  Pioneer savings Bank. Lea Waier. Fla., with $2 billion in As sets Clyde Federal savings & loan association North Riverdale. Iii., with $687 million in assets Henderson Home fed eral savings & loan association Hen Derson by. With $61.3 million in assets and Sentinel savings & loan association. Phoenix Ariz. With $175 million in assets. And in the largest so Sale since enactment of Thrift legislation in August the Etc announced it was Selling Bright Bane savings association. Dallas a $3.1 billion institution to Bane one corp. Of Columbus. Ohio. The Etc estimates the taxpayer Cost of the Deal at $ 1.4 billion. Child porn suspect apparently tried to kill himself fort Lauderdale. Fla. A a Man who Alleg edly took nude photos of children at his Day care Center was found with one wrist slashed Friday As 14 of the children began undergoing medical and psychological exams. John Shaver. 56. Was in fair condition at Broward Gen eral medical Center after a maid discovered him at a Troiel. Said fort Laud Crdal police spokesman maj. Joe Donisi. There s no danger of him dying said Donisi. We d Call it an attempt but not a real serious  Shaver was admitted As a psychiatric patient police said. More parents arc expected to View the pictures which show the children wet or in a. Wading Pool and often covered with Finger paint said police spokesman Oil Cefkin. The pictures do not depict sex acts and Are not pornographic he added. Shaver released on $5.000 Bond wednesday after his arrest sunday faces five counts of possessing child pornography for magazines found at his Home just across the Street from his rainbow1 learning Center. Shaver checked into the guest quarters hotel thursday saying he planned to stay a week Cefkin said. He was found Friday in the tub dressed Only in shorts. His right wrist had been Cut with a serrated knife Blade. In the room were seven empty 1-Ouncc liquor bottles and an apparent suicide note. The note basically said it was easier to kill himself than Deal with the  Cefkin said. Shaver wrote that he did t take any nude photos of children and admitted no wrongdoing. Parents whose children were in the photos were shocked. Cefkin said. One Mother became physically ill he said. An other father was so shaken he had to be helped out to his car by a  some parents were grateful their children were not found in the photographs but said they had spotted other preschoolers they recognized. All i can say is he s one sick  said Parent Gail Souza. After View ing the pictures. Fourteen children who attended the Day care Center John Shaver appears at his front door thursday. Were identified by some of the 140 parents who went to the police department thursday Mph and sorted through 200 to 300 photos from Shaver s Home. Three other Chil Dren were tentatively identified and about 60 families still have to review the photographs. Cefkin said. The children shown in the photos reported to the sexual assault treatment enter on Friday for medi Cal tests and interviews said director Joanne Richier. The medical tests Are mostly to alleviate the fears of the parents and Rule out the possibility of actual sexual abuse she said. Although the photographs themselves Are not porno graphic under the Law. They could Lead to sexual exploitation accusations against Shaver he said. Shaver admits owning the pictures police confiscated but does not consider them pornography. It did t cause harm to anyone. A lot of people have secret vices he said wednesday. The Case came to Light when a photo lab used by Shaver took some Pic Tures of children to police. The Way i understand child pornography is to Tell kids to take off their clothes and photograph them in the nude. I did t do  he said. Possessing child pornography is a third degree felony in Florida and punishable by a maximum five year prison sentence said Dave Casey of the fort Lander Dale state attorney s office. Broward county officials shut Down Shaver s Day care Center thursday contending Shaver lacked Good moral  200 children have attended the Day care Cen Ter since Shaver opened it in 1985. In 1984 in Hawaii. Shaver pleaded guilty to a Mise Meanor charge of operating a Day care Center without a License. The plea came a year alter the state of Hawaii revoked his License amid allegations that he fondled several Young girls at his Center. He was never Crimi Nally charged and Shaver denies any wrongdoing. Child Protection advocates complained that Shaver who did not Tell Broward authorities about the Hawaii incident should never have been Able to get another Day care License. Appeals court overturns Federal deportation Law Sands of time in the stars and stripes b the Baltimore Sun Washington a Federal appeals court Friday struck Down a Federal Law that forces into overseas exile for two years any foreigner who gels married to an american while facing a threat of deportation. The 2-1 decision of the . Circuit court of appeals Here will allow a native of Al Salvador. Moises Escobar and his american wife. Laura Staples Escobar to ask the government to Rule promptly on his right to slay Here permanently. I feel wonderful mrs. Escobar said in a Telephone interview from their sub Urban Silver Spring my. Home. We be been wailing two and a half  the Escobar however May have to wait longer for a final decision because Federal appeals courts Are now split on the constitutionality of the 1986 Law involved in i hair Case and that Means the dispute could go on to the supreme court. The immigration and naturalization service has refused since 1987. To take any action on the Escobar claim that their marriage was genuine and thai therefore he should be allowed to remain in this country As an immediate rela Tive of a citizen. The 1986 Law required Escobar to live in another country for two years before the ins could even Start a review of his plea to remain. 40 years ago Fth 4 1950 British police arrested scientist Klaus Fuchs. 38. On a charge if having broken the official secrets act. The i by said Fuchs was arrested following receipt of information provided by . Agents he estimating atomic up ing b Russia. 30 years ago foe a. Feb. 4. 1960 president Eisenhower said he thought the atomic Energy act should be changed in order to make . Nuclear weapons available to certain of America s allies 20 years ago foday. Feb 4 1970 despite a court injunction teachers in Newark. New Jersey s largest school system struck for higher pay. Bringing classes to a virtual standstill. 10 years ago foday. Feb 4, 1980 state police and National guard troops stormed the new Szalc prison to end a two Day riot thai had turned into a Bloodbath of reprisals mutilations and burning leaving 25 inmates dead. Mexico convict