European Stars and Stripes (Newspaper) - September 20, 1990, Darmstadt, Hesse                                Thursday september 20, 1990 the stars and stripes a a a Page 7 Keating jailed in lieu of bail in $250 million junk Bond Case los Angeles up a Charles h. Keating whose failed Lincoln savings and loan symbolizes the nations Thrift scandal was jailed in lieu of bail tuesday on charges that he defrauded investors who spent $250 million on now worthless junk Bonds. A these victims Are people who have lost their life savings and Are probably never going to see that Money again a los Angeles District attorney Ira Reiner said at a news conference tuesday after Keating and three other executives appeared in court on a 42-count indictment handed up by a special county grand jury. Reiner said most of the Money went from Lincoln to its Parent american Continental corp., and ultimately to Keating who has claimed that he is broke. If convicted of six or More of the counts Keating could face up to 10 years in prison. Reiner said Many of the 22,000 investors did not understand that the Bonds sold through Lincoln a 29 branches in Southern California beginning in late 1986 through most of 1988, were High risk and not federally insured. A the nature of these investments were misrepresented a he said. Federal regulators have accused Keating the former chairman of american Continental and five associates of using bogus tax shelters and dubious land deals to divert More than $40 million from Lincoln. Federal authorities have filed a $1.1 billion civil fraud suit against Keating who is also under investigation by a Federal grand jury. Also pending is a $300 million civil suit filed in june by the California attorney general a office against Keating and american Continentals accounting firm. Disgruntled purchasers of american Continental junk Bonds also have filed class action suits against Keating. But the indictment is the first criminal Case stemming from the collapse of Irvine  Lincoln 17 months ago. It includes 40 counts of securities fraud and two of making false statements to state regulators. The indictment covers Only the junk Bond sales. A we tried to have the investigation be very tightly focused so that it could be easily comprehended by a jury a Reiner said. He said prosecutors who will be led by Deputy District attorney William Hodgeman will need four to six weeks to present their Case. Superior court judge Gary Klausner delayed taking pleas from Keating and his co defendants until oct. 5, and he then ordered Keating held in lieu of $5 million bail. Charles Keating at his booking. Picture this a Eastman Kodak co. Unveiled this compact disc photographic storage system tuesday. The new system photo cd allows users to store Standard pictures and slides on compact disc and display them on a personal computer or television screen. The stored photographs also can be cropped or enlarged and reproduced with a Thermal color Printer. The system wont be available to customers for nearly two  releases grandmother 77, held for contempt Newport . Up a a 77-year-old grandmother imprisoned for not telling a judge where her two granddaughters Are hiding was granted Freedom tuesday. A lawyer for Mary Pigeon of Warwick went before Superior court judge Mark a. Pfeiffer to ask that his client be released from the state adult correctional institutions. Pfeiffer granted the request and made no comment on a state corrections department plea that Pigeon be allowed to serve her contempt of court sentence in her Home a clerk said. Pfeiffer sent Pigeon to jail on sept. 10 for an indefinite period when she did not disclose the whereabouts of Kimberly and Kelly Ann Yates who were taken from their Warwick Home by their Mother five years ago. The father of the children Russell Yates jr., believes Pigeon knows where the children Are hidden and Pfeiffer agrees with him. Pigeon maintains she does not know and has garnered sympathy from Many Rhode islanders including gov. Edward d. Dip Etc. The corrections department acted on behalf of the governor last week when it requested Pfeiffer place Pigeon in Home confinement. Meanwhile the director of the Newport based society for Young victims said she was checking out a report that the Yates children and their Mother Elaine Yates were in the Midwest. June Vlasaty did not specify where in the Midwest. She said the tipster told her that Elaine was living with a banker and working for him As an accountant. Vlasaty said the tipster identified herself As the wife of the Man Yates is living with. The informant knew the approximate age of the children who were 3 years old and 10 months old respectively when they were taken from their Home Vlasaty said. The tipster also said Elaine Yates was using an assumed name the same name As the woman Russell Yates was said to be having an affair with when Elaine left Home Vlasaty  rate reported at 40-year High Chicago apr the . Syphilis rate is at its highest level in 40 years and the biggest increase in the sexually transmitted disease has been among Blacks according to a Federal study. Results of the study were published in wednesdays journal of the american medical association. Another report in the same edition says the common inexpensive methods of treating gonorrhoea should be abandoned because of Sharp rises in the penicillin resistant and tetracycline resistant strains of the disease. In the first study researchers at the centers for disease control in Atlanta report a 34 percent increase in the number of americans treated for syphilis be tween 1981 and 1989. They said 18.4 of every 100,000 americans were treated for syphilis last year up from the 13.7 cases per 100,000 treated in 1981. The 1989 rate was higher than at any time since 1949, the study said. The Overall rate has risen most sharply in the last four years which May be an indication that precautions spurred in the Early 1980s by the aids outbreak Are on the Wane said one of the study a authors or. Allyn k. Nakashima of the cd cd a division of sexually transmitted diseases. Especially worrisome though the study a authors say is the High rate among Blacks. The study shows the incidence of syphilis among Blacks More than doubled Between 1985 and 1989, to 121.8 cases from 52.6 cases per 100,000 people. In contrast syphilis rates among White males have dropped by 69 percent since 1982. The disease rate for White females remained Low and unchanged. Data for the study came from quarterly and annual reports sent to the cd by state health departments Over the nine year period reviewed. Commenting on the new study the March of dimes birth defects foundation said in a statement that it has seen a a shocking 186 percent jump in the number of babies bom with syphilis passed on by infected mothers in the last five years. The gonorrhoea study shows that although the incidence of the disease has decreased since 1975, there is an increasing problem with infections caused by strains that Are resistant to treatment with penicillin and tetracycline. In the study conducted from september 1987 through december 1988, researchers examined 6,204 cases from 21 clinics nationwide and 21 percent showed potential for resistance to both treatments plus two other often used drugs Cero Zitin and up Actinomycin. The cd recommends gonorrhoea be treated with Cestr saxone. Its at least seven times More expensive and is the Only treatment that All of the diseases strains have been susceptible to said the study a primary author or. Sandra k. Schwarcz also of the cd